Kill Fees: Getting Paid When Projects Get Cancelled

Kill Fees: Getting Paid When Projects Get Cancelled You clear your calendar, turn down two other projects, and dive into a six-week engagement. Three weeks in, the client emails: "We've decided to go in a different direction. The project is cancelled effective immediately." You have already completed half the work. You turned down $8,000 in other projects to take this one. And now, if your contract does not include a kill fee, you might walk away with nothing beyond payment for whatever the client considers "approved" work. This is not a rare scenario. According to industry surveys, roughly one in four freelance projects experiences a significant scope change or outright cancellation. A kill fee is the contractual mechanism that protects you when this happens. What Is a Kill Fee? A kill fee is a predetermined payment that the client owes you if they cancel a project before completion. It compensates you for the income you lost by committing to the project â