What to Do When a Client Kills a Project
So, there you are, working away on a project, and oh, is it a good one. You’re having fun, the client’s loving your work, and then…
…the whole thing comes to a screeching halt.
A quick glance through my Projectus Interruptus file shows the following:
- A university department’s website redesign gets scuttled because the college’s website redesign is going on at the same time, and guess what? As part of this effort, each department gets a new site too. That sure was news to the department head I’d been working with. What’s worse, he liked my new design a lot better than the college’s.
- The company’s two head honchos can’t agree on what they want their product logos to look like, so they kill the entire logo design project.
- Another university department’s brochure design has to be approved by the college. And the college dean’s office informs the department head that their ad agency is already working on a brochure. He was just as surprised as the department head mentioned in the first item.
Whether it’s disagreements among your clients, out-of-the-blue budget cuts, or simultaneous design efforts that your client didn’t know about, the end result is the same: You’re out of work.
What to do now?
The first and most important thing is to get paid for what you’ve already done. Add a “kill fee” provision to your client contracts. Here’s some verbiage that you could use:
The total amount of this contract is $______________
This agreement begins with an initial payment of $_____________
If the Client halts work and applies by registered letter for a refund within 30 days, to the Owner of [Your Business Name, along with its address and telephone number], work completed shall be billed at the hourly rate [of $NNN] and deducted from the initial payment, the balance of which shall be returned to the Client.
If, at the time of the request for refund, work has been completed beyond the amount covered by the initial payment, the Client shall be liable to pay for all work completed at the hourly rate stated above. No portion of this initial payment will be refunded unless written application is made within 30 days of signing this contract.
Tip: Before you use the above verbiage, run it past your attorney. He or she may have some suggestions for you.
Be forewarned that some organizations, universities, for example, may not agree to a kill fee. However, I’ve found that university clients who’ve been hit with unforeseen Projectus Interruptus have paid me in full.
Second, don’t end your relationship with the client. Projectus Interruptus is painful, and you may not feel very cheerful and chipper, but get over it. Your client probably feels as bad as you do.
While you’re getting over the hurt, send your client a thank you letter. Tell him or her how much you enjoyed working with her, and that you would enjoy the opportunity to do so again. Suggest projects. Could her organization use a new logo? Show examples of logos you’ve designed for other clients. Or is the website a bit long in the tooth? Show how you’ve turned ugly duckling sites into beautiful swans.
In addition to suggesting projects, ask your Projectus Interruptus clients for referrals. They’ve probably been collaborating with you for a few weeks or months, so they know your work style and reliability. Even if your project didn’t get finished, their recommendation still carries a lot of weight with their colleagues.
Last but not least, keep your client in the loop. Put her on your announcements list, add him to your social networking contacts, or just check in with a phone call now and then.
Projectus Interruptus may feel fatal right now, but who knows what things could be like in six months? Your current-day budget cut victim may find new funds, and guess what, you’re back in a client relationship again.
excellent article, right now i require 50% upfront before i start the project and I don’t have a kill clause at all, which could leave me open to lose if the client kills the project after most of the design and development is complete… something i definitely have to re-work on my contracts. thanks again for the article!
Great article. Especially love the “kill fee” concept.
For me, most instances of Projectus Interruptus have been a result of misinterpreted budgets. But I think it’s important to emphasize that while the company may have killed the project, if you do great work, your contact at that company will fight to have you on future projects.
A kill fee is essential if the project is large enough that you could put in substantial work past an initial payment. In fact, I’d think twice about working with someone who wanted to reserve the right to kill a project but not pay for work completed. That’s a one-sided arrangement and, frankly, the consideration of what they will have to pay you should play into their kill/don’t kill decision. If you’re doing, say, an identity project for $4k and have $1,000 upfront, get almost all the way done and then they kill it without having to pay you anything, they’re only out $1k. But if they had to pay you, say, $2k for a total of $3000… they might not kill it. IF they do, you’ve still been compensated for work done in good faith.
We’re small businesses ourselves and there’s NOTHING wrong with structuring deals to protect our interests.
Great article! It gave me a lot to think about. I’ve never asked for any money upfront, but perhaps this is something I should consider. Only once have a client killed a project, and I wasn’t paid a cent. Wasn’t really sure how to deal with it, as this client had never acted anything like that before. This particular business relationship is now completely over.
It was a lesson learned, and I’m a bit more weary of who I work with now!
I never thought about using a kill fee before, I might have to implement this later or at the least do some more research on it.
The kill fee is an excellent idea. I’m new to freelancing so luckily I have not had this happen on a project (yet) although at a previous job this did occur from time to time. Since I was on salary I did not experience the hurt of not getting paid but still the disappointment of not getting to complete the project.
One thing to remember is that every project is a learning experience and while it may not have gone to plan, even bad experiences are good learning experiences.
I will definitely consider using a kill fee on large freelance projects to avoid that hurt of not getting paid. A learning experience is a great thing but so is money!
This literally happened to me yesterday. I would have been more upset, but I fired a client from hell last week who was nothing but heartache and trouble for 3 months, so the fact that the client who decreased the budget and said the work would probably be halted at the end of August in an up-front manner, I knew I could work with him. Basically the cash-flow for the project I was being sub-contracted out to was cut in half for the remainder of the month and prorated to the beginning of August. The initial input from my client was “sorry, I’m telling you this as I found out, but we’re getting prorated cut in our budget so we can only afford to pay you half and there probably won’t be anymore money after August.” I was able to negotiate a 1/3 compensation of my bi-monthly rate for the sudden drop in income, but agreed to continue moving forward with the work at a lesser rate. I walked away with less money, but money nonetheless and my client, who’s been a pleasure to work with, still likes me and may use me again.
Yes, Exactly.
What if the client cancels all checks written out to you and stops answering calls, e-mails, mail, etc. ???
My contracts also have a clause where I get paid for any work performed, including if the project is cancelled. I have had a client cancel before. To my surprise, they did pay for the work I had completed.
I also have a line that says I retain copyright until I receive payment. If they didn’t pay for it, they don’t own it.
What to Do When a Client Kills a Project?
Sigh a sigh of relief, take day off. Maybe play a football videogame. Hang out with the dog. Be thankful you don’t put all your eggs in one basket anymore
how do you ask for a referral?