# TRUST YOUR GUT: Chapter Eleven, Get Paid When Clients Cancel

Page: https://stenobird.com/podcast/construction-legal-made-easy-6524910/trust-your-gut-chapter-eleven-get-paid-when-clients-cancel
Text version: https://stenobird.com/podcast/construction-legal-made-easy-6524910/trust-your-gut-chapter-eleven-get-paid-when-clients-cancel.md
Podcast: [Construction Legal Made Easy](https://stenobird.com/podcast/construction-legal-made-easy-6524910)
Published: 2026-05-11T12:00:00+00:00
Episode link: https://b3b9db25-16d7-4003-8965-8d5253a4e3df.libsyn.com/get-paid-when-clients-cancel
Audio file: https://traffic.libsyn.com/secure/b3b9db25-16d7-4003-8965-8d5253a4e3df/CLME_11may25_Trust_Your_Gut_Chapter_11.mp3?dest-id=4086060
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JSON: https://stenobird.com/v1/public/podcasts/construction-legal-made-easy-6524910/episodes/trust-your-gut-chapter-eleven-get-paid-when-clients-cancel
Duration seconds: 527

## Resource

Cancellations should not cost you everything. Karalynn explains why every residential contract needs a clear cancellation clause, how to tie it to deposits, milestones, and profit on unperformed work, and how this simple language saves you from expensive fights when homeowners walk away. Learn more about The Cromeens Law Firm here ! Grab Karalynn's new book Trust Your Gut here . Follow Karalynn Cromeens on Facebook here . Follow Karalynn Cromeens on Instagram here . Follow Karalynn Cromeens on LinkedIn here . Watch the show on YouTube here . Key Takeaways 1. A cancellation clause defines what happens when a homeowner cancels after signing, giving them the right to cancel while guaranteeing you are compensated for time, effort, and lost profit. 2. The homeowner's three day right to cancel without penalty exists in most states, so your clause must operate after that grace period to protect your payment rights. 3. When a project is canceled before work begins, the contract should make the initial deposit non refundable to cover scheduling, preparation, and lost opportunities. 4. When a project is canceled after work has started, you should be paid for work performed plus a clearly stated percentage of the remaining contract to reflect the profit you would have earned. 5. Tiered cancellation language and specific percentage ranges tied to project stages reduce ambiguity, shorten disputes, and make it far easier to enforce your right to profit if a client backs out. Timestamped Overview 00:00 Show intro and welcome 00:17 Trust Your Gut "cheap Audible" setup 00:40 Introduction to the cancellation clause 01:05 Why contracts need this protection 01:30 Three day homeowner cancellation right explained 02:00 How a cancellation clause defines damages 02:37 Problems when profit is…

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