Project Cancellation Policy for IT Company

1. Introduction

This Project Cancellation Policy outlines the terms and conditions under which a project may be cancelled by either the Client or the IT Company. This policy aims to ensure a clear understanding between both parties and to provide a fair and transparent process for handling cancellations.

2. Cancellation by the Client

The Client reserves the right to cancel the project at any time, subject to the following conditions:

2.1 Notice Period

• The Client must provide a written notice of cancellation at least 30 days before the desired cancellation date.
• Notice must be sent via email to the Project Manager and an official letter to the IT Company’s registered office.

2.2 Cancellation Fees

• If the Client cancels the project before its start date, a cancellation fee of 60% of the total project cost will be charged.
• If the Client cancels the project after the start date but before 50% completion, a cancellation fee of 80% of the total project cost will be charged.
• If the Client cancels the project after 50% completion, the Client is responsible for 100% of the project cost.

2.3 Refunds

• Any advance payments made by the Client will be adjusted against the cancellation fees.
• If the cancellation fee exceeds the advance payment, the Client will be invoiced for the balance, payable within 30 days of cancellation.

3. Cancellation by the IT Company

The IT Company reserves the right to cancel the project under the following conditions:

3.1 Notice Period

• The IT Company must provide a written notice of cancellation at least 30 days before the desired cancellation date.
• Notice must be sent via email to the Client and an official letter to the Client’s registered office.

3.2 Grounds for Cancellation

• Non-payment or delayed payment by the Client beyond 30 days of the due date.
• Repeated failure by the Client to provide necessary information or resources required for project completion.
• Mutual agreement between the Client and the IT Company.

3.3 Refunds

• In case of cancellation by the IT Company, the Client will be refunded for any advance payments made, less the cost of any work already completed and delivered.
• If work completed exceeds the advance payment, the Client will be invoiced for the balance, payable within 30 days of cancellation.

4. Mutual Cancellation

If both parties agree to cancel the project, terms and conditions, including any fees or refunds, will be mutually decided and documented in writing.

5. Final Deliverables

Upon cancellation, any completed work up to the cancellation date will be delivered to the Client in its current state. The IT Company retains the right to withhold deliverables until all outstanding payments are settled.

6. Dispute Resolution

In case of any disputes arising from project cancellation, both parties agree to attempt resolution through mediation or arbitration before pursuing legal action.

7. Amendments

This policy may be amended from time to time, and such amendments will be communicated to the Client in writing. Any amendments will not retroactively affect projects already in progress unless mutually agreed upon.

8. Contact Information

For any questions or concerns regarding this policy, please contact: