Milestone based Projects - Delay
- A buffer duration of 30% of the total project duration mentioned in the agreement would be provided to account for delays caused by either of the parties (i.e, Client or Freelancer)
- A delay fee of 10% per month can be claimed by either of the parties (i.e, client or freelancer). If the project gets extended beyond the total project duration including the buffer duration. The penalty, if claimed, would be calculated on a pro-rata basis. Please check out the below example to understand clearly:
- A UI/UX project duration as per contract is 60 days and a project value of 50,000 INR. So, the buffer period for this project would be 60*30% = 18 days. The actual project completion took 120 days. Since the project did not get completed in 78 days (incl. buffer duration), the delay amount would be calculated for 120-78=42 days. So, the total claimable delay fee would be 42/30* 50000*10% = 7,000 INR.
- This delay fee can be claimed by clients or freelancers depending on who caused the delay in the project.
- Morff informs both parties at the completion of milestones on how to avoid delays. Claiming of delay fee entirely depends on the party. Morff will provide details and raise an invoice if the delay fee request is invoked by either party.
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