What it is
A kill fee is a pre-agreed payment owed if a client cancels a project before completion. It's separate from payment for work already delivered — it compensates for the opportunity cost of the cancelled work.
Why it matters
Without a kill fee, a same-day cancellation can leave you with nothing for time blocked off, opportunities turned down, or partial drafts not yet delivered.
Sample clause language
"If Client cancels the Project after kickoff, Client shall pay (a) all fees for work completed and in progress, and (b) a kill fee equal to fifty percent (50%) of the remaining contract value."
What it really means: Strong protection. Some contracts use a sliding scale (25% before midpoint, 50% after) — also fair.
Red flags
- No kill fee at all
- Cancellation only triggers payment for delivered work
- Vague 'reasonable compensation' language
- Kill fee waived for any reason
Fair / acceptable
- Flat 25–50% kill fee
- Or sliding scale by milestone
- Plus payment for in-progress work
How to negotiate
- Ask for 50% kill fee post-kickoff
- Or scale: 25% before midpoint, 50% after
- Pair with notice requirement (14 days)
Frequently asked questions
Decode this clause in your contract
Upload your contract and we'll flag this and every other risky clause — in plain English, in seconds.
Related clauses
Not legal advice. For informational purposes only.