Archive for March 17th, 2011

I have just completed a review of my companies Terms and Conditions and found that I was missing a Kill Clause.   Without this clause, I was at risk of loosing a lot of money if a customer cancelled a project after I had started worked.   Luckily for my company, this has never happened, but of course that doesn’t mean that it could not happen in the future.

So today I added an additional clause to my Terms and Conditions with a Kill Clause as follows:

3. Project Cancellation
In the event that the Client cancels the project before completion, the Company shall deem the project completed and will invoice for the outstanding effort, time and expenses up to the point of cancellation.   This effort will be calculated as the actual time spent on the project up to the point of cancellation, and will be calculated using the daily rates agreed as part of the original quotation, rounded up to the nearest half day. 

What this clause is effectively saying is that if you order work, products or services from my company and then just before delivery you cancel the project, you can expect an invoice for the work and expenses spent on the project up to that point.  

I also have an abridged version of my Terms and Conditions, so I am also updating this version to include a Simple English version which simply says: 

If you decide to cancel the project before it is completed, we will raise an invoice for any outstanding work effort and expenses up to the point of cancellation.

 Do you have a Kill Clause in your Terms and Conditions?