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FreelancersAugust 12, 2026 ยท 4 min read

How to Negotiate Kill Fees & Cancellation Terms in Client Contracts

Client canceled your project halfway through? A kill fee ensures you are compensated for committed time and resources.

Projects get canceled for many reasons: budget cuts, executive shifts, or internal pivots. Without a kill fee clause, you risk receiving nothing for weeks of completed work.

Structuring a Fair Kill Fee

Specify a non-refundable deposit (e.g. 25โ€“50%) plus payment for all completed milestones and non-cancellable expenses incurred up to the termination date.

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