Why Your Contract Should Have a Project Kill Switch

A lot happened between 2019 and 2021. I launched a new service that I originally called “Ship Your Podcast” – a done-for-you Podcasting service. I’ve since folded it under the Podcast Liftoff brand. But I also started doing a lot more video work…and that was the bell of the ball when I met with people at WordCamp US 2019.

I signed on clients to both services. Contracts signed. Deposits deposited. Then the pandemic hit. Two clients completely disappeared. One seems to have completely moved on. The other came back 14 months later…

Picking Things Up Again

The other came back 14 months later and wanted to pick up where we left off. And while that deposit was long gone and the work completely stopped over a year ago, I was still obligated to continue the work. Not only was I not in a place to continue the project, but my rates had changed.

I ended up refunding the full deposit. While I annoyed at the hit to my bottom line and the wasted time, I know it was the right thing to do. They paid for a service that I no longer wanted to render¹.

A Project Kill Switch

My problem was I didn’t have a project kill switch; something that says, “Hey if you disappear on me, I keep the deposit and you’ll need to pay to get things started again.” I knew I needed to change that².

I am not a lawyer…

I’ll precede the rest of this with I am not a lawyer, nor do I play one on TV (I do have an obsession with reading and redlining contracts though).

Why You Should Have a Kill Switch

This kill switch isn’t just about weaseling out of work; businesses rely on predictability and a kill switch (or cancellation / suspension clause) helps. It lets you and the client know that if they go dark, you’re moving on.

This allows you to better serve your other clients now and in the future. It also makes clear that after a certain point, the deposit is non-refundable³.

What Should a Project Kill Switch Include?

These things can take many forms, so this isn’t at all conclusive. But here’s what I think should go in your kill switch:

1. A clause that states when a project is delayed, where delayed means the project goes to the end of the line until it’s restarted.
2. A clause that states when a project is suspended. Basically all work stops and the client will need to take some action (potentially payment) to start it again.
3. A clause that states when a project is abandoned. The project is considered dead and the client will need to take some bigger action (potentially payment of previously completed and new work)

There should also be clauses in there for how much of the deposit is kept, when the entire deposited and forfeited, what the client gets upon paying for unpaid work, etc.

Check Out Monster Contracts

Now, again, I’m not a lawyer⁴. So I wasn’t sure where to start with all of this. Luckily, my friend Nathan Ingram (author of the fantastic Dealing with Problem Clients) has the perfect solution: Monster Contracts.

I mentioned my quandary to Nathan and he mentioned that Monster Contracts has several clauses that cover what I outlined above. This is a fully-vetted, lawyer-written contract primarily for WordPress and web developers (but I’m using parts of it for my podcasting and video clients).

If you don’t want to pay potentially thousands in lawyer fees and want a great contract – either to use out of the box, or to have your own lawyer touch up to make it work better for your business, you need Monster Contracts. It’s $199, then $39/year. The subscription helps pay for lawyer reviews, new clauses, and updated clauses.

Oh, and you get 20% off if you use my code, HIBI, at check out.

1. YES I did do some work, but it honestly wasn’t worth it to me to figure out what a partial refund would be, nor was the possible back and forth haggling with the client. ?
2. It’s something I had been saying for months actually, as I anticipated eventually this project would come back. ?
3. Kind of the whole purpose of a deposit, really. ?
4. Want this to be super clear! ?