How kill fees are usually structured
Flat percentage
A fixed share of the total fee — commonly 25% to 50% — payable on cancellation regardless of timing. Simple to write and simple to enforce.
Sliding scale
The percentage rises as the project progresses. For example 25% if cancelled before work begins, 50% at the midpoint, 100% after final delivery is submitted. More equitable, slightly more to negotiate.
Work-completed basis
Payment for hours actually worked, plus a smaller cancellation premium. Common on hourly engagements where a percentage of total fee doesn't map cleanly.
The distinction that matters: kill fee vs deposit
A deposit is money paid up front and credited against the total. A kill fee is money owed because of cancellation. They're often confused, and a contract can contain both.
A non-refundable deposit provides some of the same protection, but only up to the deposit amount. If you're 80% through a project with a 20% deposit, a deposit alone leaves most of the work uncompensated.
What makes a kill fee actually collectable
Workable: A stated percentage or scale, a definition of what counts as cancellation, a payment deadline after cancellation, and a statement of what the client receives — usually the work produced to that point.
Weak: "A kill fee may apply." No percentage, no trigger, no deadline. This is functionally a request rather than a term.
The part most guides skip: who owns the work after a kill feeMost kill fee clauses state the money but say nothing about the deliverables. That gap matters in both directions. If the contract is silent, a client may pay the kill fee and assume they own the partial work — including concepts they can hand to someone cheaper to finish. A clause worth having states explicitly whether ownership transfers on payment of the kill fee, or whether the work remains yours until the full fee is paid. That single sentence is often worth more than the percentage itself.
Questions to ask before you sign
- Is there a kill fee at all, or only a deposit?
- What percentage, and does it change based on project stage?
- What specific event triggers it?
- How many days after cancellation is it payable?
- Does the client receive the partial work, and do they own it?
- Does the kill fee apply if I terminate, or only if they do?
Sources
- American Society of Journalists and Authors — standard kill fee practices in commissioned work
- Graphic Artists Guild Handbook — cancellation and rejection fee conventions
This is general information, not legal advice. Docly helps you find and understand what a document actually says. It does not tell you whether a clause is enforceable where you live, and it is not a substitute for a lawyer. For a decision with real money attached, get advice from an attorney licensed in your state.
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