Web development checklist

Before you sign a web development contract

8 clauses worth a second look, with what is off-market and the one-line fix for each. Work down the list against the contract in your inbox.

1. 01

   Kill fee

   Red flag

   A clause letting the client cancel any time and pay only for 'accepted' work, so a nearly finished milestone that has not been formally signed off is worth nothing.

   The fix

   "On cancellation, all completed milestones and the current milestone in progress are due in full. The deposit is non-refundable once work begins."

   What is normal for kill fee →
2. 02

   Deposit

   Red flag

   No deposit with everything due at launch, so the developer funds weeks or months of work and carries the full risk of a stalled or abandoned project.

   The fix

   "A 40% deposit is due at signing. Remaining payments are tied to milestones: [design], [build], [launch]."

   What is normal for deposit →
3. 03

   Net payment terms

   Red flag

   Net-60 on milestones, or final payment gated on the client's own launch readiness with no outside date, so the developer waits indefinitely after the work is done.

   The fix

   "Milestone invoices are Net-15. Final payment is due at handover; if launch is delayed by Client for more than [30 days], the balance is due regardless."

   What is normal for net payment terms →
4. 04

   Unlimited revisions

   Red flag

   "Revisions until the client is satisfied" or an open scope where any new feature counts as a 'revision', turning a fixed bid into unbounded development.

   The fix

   "The fee covers the scope in [the spec] with 1 revision round per milestone. New features or scope changes are handled as billed change requests."

   What is normal for unlimited revisions →
5. 05

   IP transfer

   Red flag

   "Client owns all code, tools, and libraries on creation," which claims the developer's reusable toolkit and open-source code the developer cannot actually assign, and transfers before payment.

   The fix

   "On full payment, Client owns the custom code built for this project. Developer retains pre-existing tools and grants a license to use them. Open-source and third-party components remain under their own licenses."

   What is normal for ip transfer →
6. 06

   Exclusivity

   Red flag

   A clause barring the developer from building for any company in a broad sector for a year after a single project, with no compensation.

   The fix

   "For the engagement plus [60 days], Developer will not build competing products for [named competitors]. This is reflected in the rate."

   What is normal for exclusivity →
7. 07

   Liability cap

   Red flag

   Uncapped liability plus an 'error-free' or 'no downtime' warranty, making the developer liable for the client's lost revenue whenever a bug or outage occurs.

   The fix

   "Developer's liability is capped at the fees paid. Software is warranted to conform to spec, not to be error-free. Consequential damages, including lost revenue and data loss, are excluded."

   What is normal for liability cap →
8. 08

   Non-compete

   Red flag

   A clause preventing the developer from working in the client's whole industry, or with any competitor, for six to twelve months after the project, uncompensated.

   The fix

   "Developer will keep Client's code, data, and plans confidential, and is otherwise free to work with other clients. Any competitor restriction names [companies] and lasts [3 months]."

   What is normal for non-compete →