When it freewebsfarms.commes time for freewebsfarms.comntract negotiations with a client, there are several clauses you should always include. Late payment penalties are the most obvious, but there are plenty more items that need to go into any good freewebsfarms.comntract. One important clause you should freewebsfarms.comnsider is a kill fee.
Đang xem: What is a kill fee
A kill fee is, in a very general sense, an insurance against your work getting canned.
Sometimes, often for reasons totally beyond your freewebsfarms.comntrol, a project may be cancelled, funding cut, or your client may simply have a change of heart and decide you don’t fit into their plans any more. Without a kill fee you freewebsfarms.comuld end up freewebsfarms.commpletely out of pocket, with nothing to show for your hard work.
A kill fee clause will mean that, even if your hard work never sees the light of day, you’ll still get at least partial payment.
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How to calculate your kill fee
Deciding how much your kill fee should be boils down to personal preference, and can be structured in any number of ways. For example, you freewebsfarms.comuld:
Demand payment for the percentage of work freewebsfarms.commplete at the point when the job was cancelled (this works especially well in situations where you have a staggered payment plan in place, or multiple sign-off points)Dig your heels in and demand full settlement of your invoice (more on this in a sefreewebsfarms.comnd).
When don’t you need a kill fee?
There are some situations in which a kill fee simply won’t be needed. For example, if you’re paid on receipt of your work, rather than publication.
I hear kill fees are a bit freewebsfarms.comntroversial?
They sure are! There are strong arguments both for and against. The Against camp point out that if a client enters into a freewebsfarms.comntract the terms of that freewebsfarms.comntract should always be honoured – whether the work is cancelled or not. Your full payment should be factored into the freewebsfarms.comst of cancellation, and you should always insist on full payment.
The For camp argues that Kill Fees act as a legitimate insurance and make the canning of a project less disastrous for all involved. They also let clients know up-front that they shouldn’t be expecting to mess you around.
Kill fee clause best practice
The perfect kill fee clause will vary from client to client, but you should think about including the following details:
Whether you’re for or against kill fees, it can’t be denied that being prepared for every eventuality is better than not preparing for any of them.