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Contract Payment Clause Builder

Configure your payment terms and get ready-to-paste contract language. Copy the clauses directly into your freelance contracts.

Deposit

Deposit percentage (%)

Set to 0 for no deposit clause

Milestones

Net Terms

Late Fees

Monthly rate (%)

Kill Fee

Kill fee percentage (%)

Set to 0 to omit the kill fee clause

Generated Contract Clauses

DEPOSIT AND COMMENCEMENT OF WORK

A non-refundable deposit of 25% of the total project fee is due upon execution of this Agreement. Payment of the deposit shall be made within three (3) business days of signing.

Work shall not commence until the deposit has been received in full. The deposit shall be applied toward the total project fee.

In the event that the Client terminates this Agreement after work has commenced, the deposit is non-refundable and shall be retained by the Service Provider as compensation for scheduling, planning, and any work completed to date.

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PAYMENT TERMS

All invoices are payable within 30 days of the invoice date ("Net 30"). "Payment received" means funds have been deposited and cleared in the Service Provider's designated bank account.

Invoices shall include a unique invoice number, description of services rendered, amount due, and payment instructions.

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LATE PAYMENT FEES

If payment is not received within five (5) business days after the due date:

A late fee of 1.5% per month shall be applied to the outstanding balance, calculated from the original due date, compounding monthly.

The Service Provider reserves the right to suspend all work in progress until the overdue balance, including any accrued late fees, has been paid in full. The Client shall also be responsible for any reasonable collection costs incurred in pursuing overdue payments.

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CANCELLATION AND KILL FEE

Either party may terminate this Agreement by providing written notice. In the event of termination by the Client after work has commenced:

(a) The Client shall pay for all work completed through the date of termination.

(b) The Client shall pay a kill fee equal to 25% of the remaining unpaid project balance. This compensates the Service Provider for lost opportunity, scheduling disruption, and allocated resources.

(c) The kill fee and all outstanding invoices shall be due within fifteen (15) calendar days of the written cancellation notice.

(d) Upon receipt of all payments, completed work product shall be delivered to the Client.

This clause does not apply to termination for material breach by the Service Provider.

These templates are for informational purposes only and are not legal advice. Have an attorney review your contracts before use.

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Contract Payment Clause Templates

8 ready-to-use contract clauses: deposits, milestones, late fees, kill fees, scope creep, and more.

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DEPOSIT AND COMMENCEMENT OF WORK A non-refundable deposit of 25% of the total project fee is due upon execution of this Agreement. Payment of the deposit shall be made within three (3) business days of signing. Work shall not commence until the deposit has been received in full. The deposit shall be applied toward the total project fee. In the event that the Client terminates this Agreement after work has commenced, the deposit is non-refundable and shall be retained by the Service Provider as compensation for scheduling, planning, and any work completed to date. --- PAYMENT TERMS All invoices are payable within 30 days of the invoice date ("Net 30"). "Payment received" means funds have been deposited and cleared in the Service Provider's designated bank account. Invoices shall include a unique invoice number, description of services rendered, amount due, and payment instructions. --- LATE PAYMENT FEES If payment is not received within five (5) business days after the due date: A late fee of 1.5% per month shall be applied to the outstanding balance, calculated from the original due date, compounding monthly. The Service Provider reserves the right to suspend all work in progress until the overdue balance, including any accrued late fees, has been paid in full. The Client shall also be responsible for any reasonable collection costs incurred in pursuing overdue payments. --- CANCELLATION AND KILL FEE Either party may terminate this Agreement by providing written notice. In the event of termination by the Client after work has commenced: (a) The Client shall pay for all work completed through the date of termination. (b) The Client shall pay a kill fee equal to 25% of the remaining unpaid project balance. This compensates the Service Provider for lost opportunity, scheduling disruption, and allocated resources. (c) The kill fee and all outstanding invoices shall be due within fifteen (15) calendar days of the written cancellation notice. (d) Upon receipt of all payments, completed work product shall be delivered to the Client. This clause does not apply to termination for material breach by the Service Provider.