What Are Kill Fees? Compensation owed when a client cancels a project after work has begun but before completion. Standard Kill Fee Structures Percentage-based: 25-50% of total project fee Work-completed: Full payment for finished milestones Time-based: Hours invested at hourly rate Hybrid: Greater of percentage or work completed When Kill Fees Apply Project cancellation by client, client-caused delays exceeding X days, or client fails to provide required materials. Sample Language "If Client cancels after work begins, a kill fee equal to 50% of total project cost or payment for all completed work (whichever is greater) is due within 15 days."