QuotedPartAnswers · Updated 2026-10-30
Customer cancelled an order part-way through: what can I charge?
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Charge for the cost you've incurred and cannot recover, plus a fair profit on the work you completed, and write the schedule into your terms before the order, not after the cancellation. On a 100-piece anodized aluminum bracket order priced at $2,698.00, our pricing engine puts the cost incurred at $386.53 once the material is bought, $604.41 after programming and setup, $1,898.02 when the parts are all machined and $2,075.00 when they are anodized. Your cancellation charge sits between the cost and the price at each stage.
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A schedule by stage
The table follows the order through the shop. Material is bought first, programming and setup come next, machining runs, and the finisher is last. At each stage, the cost incurred is what you've spent. The charge column is the cost plus 30% on the cost of work you've actually done (the same markup as the quote), less what you can recover by returning or using material.
Notice how much is spent before the first chip is made well: material and setup alone are 29% of the order price here, and they are fixed whatever the quantity. A buyer who cancels after the first article has already caused that much cost.
| Stage | Cost incurred | Cost plus 30% | Share of the order price |
|---|---|---|---|
| Material ordered, nothing cut | $386.53 | $502.49 | 19% |
| Programmed and set up, first article done | $604.41 | $785.73 | 29% |
| Half of the parts machined | $1,251.22 | $1,626.58 | 60% |
| All parts machined, not yet anodized | $1,898.02 | $2,467.43 | 91% |
| Anodized, ready to ship | $2,075.00 | $2,697.50 | 100% |
What you can and can't recover
Material that can go back to the supplier, or be used on another job, reduces the charge. Material cut to size for this part, or an exotic alloy you can't resell, does not. Subtract what you can actually recover and be ready to show your PO to the supplier if the buyer asks.
Finished custom parts present a different question. Under the Uniform Commercial Code, which governs sales of goods in most states, a seller of specially made goods that cannot be resold in the ordinary course may in some cases recover the price. That's a legal question that depends on your state, your contract and the facts, so treat it as a reason to have terms and to call a lawyer on a large one, not a rule to quote to a buyer.
Be reasonable in the heat of it. A buyer who cancels because their program was cancelled is not your enemy, and a clear schedule is easier to accept than a surprise invoice. Many shops offer to deliver the finished parts instead of cancelling, or to hold them against a later order.
Clause wording for your terms
"Cancellation or reduction of an order after acceptance is subject to a charge for costs incurred, including material purchased or committed, programming, tooling and setup, work in process and outside services committed, plus a reasonable profit on work completed. Finished parts will be delivered and invoiced at the quoted price. The seller will mitigate by returning or reselling material where possible and will credit amounts recovered."
Add a sentence to the order acknowledgement: "Material for this order will be purchased on [date]. Cancellation after this date incurs the charges in the terms." That gives the buyer a clear moment after which the money is spent.
Print the terms on the quote and reference them on the acceptance. A clause nobody has seen is difficult to enforce.
Cost lines of the order
- • Part: 4 × 2 × 0.5 in 6061 bracket, 100 pieces, Type II clear anodize.
- • Material $386.53, setup and programming $217.88, machine and labor $1,293.61, anodize $176.98.
- • Half-machined stage assumes machine and labor is spread evenly.
| Line | Amount |
|---|---|
| Material | $386.53 |
| Setup and programming | $217.88 |
| Machine and labor | $1,293.61 |
| Anodize | $176.98 |
| Total cost | $2,075.00 |
| Order price | $2,698.00 |
Sources and limits
Claims are dated where they can change. Product calculations are examples from the stated inputs, not a promise about a customer's quote. Competitor wording is attributed to the source shown.
- Cost lines are from QuotedPart's pricing engine (US starting catalog, 30% markup, 100 brackets, Type II anodize). The stage split of machining time is an example. This page is not legal advice.
Questions
Do I have to have a cancellation clause?
No, but without one you are arguing from general law and fairness. A clause on the quote and PO makes the discussion short.
What if the buyer says they never saw the terms?
That's why they go on the quote and the acknowledgement. Keep the sent versions.
Price one of your own parts
Drop a PDF drawing or a STEP file. QuotedPart reads the print, measures the model and prices it in seconds, on default shop rates you can change.
Your STEP file or PDF drawingDrop a PDF drawing, a STEP file or both
Free. No account, no email. Priced at our default US rates until you set yours.
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