Glossary
Kill fee
A kill fee is a payment due to a creator or supplier when a client cancels a project before it is finished.
A kill fee is a sum the client pays if it cancels a commission part way through. It is common in creative work, such as photography, writing, illustration and design, where the supplier may have turned down other work to make time.
Kill fees are usually set as a percentage of the total fee, and often rise as the project gets closer to completion. For example, a contract might set 25% if the client cancels before work starts and 50% after the first draft. Some contracts set a fixed sum instead.
The kill fee normally sits in the termination or cancellation clause. The contract commonly also says who owns the work produced so far, since a kill fee does not always come with the rights in that work.
Example
A magazine cancels a commissioned feature after the first draft, and pays the writer the agreed 50% kill fee.