Payment Terms Policy

Document ID: WBL-FIN-PT-v1.0 Effective Date: [DATE] Last Revised: 2026-02-19 Applies To: All Webility clients and engagements.

1. Introduction

This Payment Terms Policy ("Policy") sets out Webility's ("Agency") standard financial terms for all client engagements. It governs how fees are structured, when payments are due, what happens when payments are late, and how expenses are handled.

This Policy is incorporated by reference into all Statements of Work (SOW) and the Master Service Agreement (MSA). Where a specific SOW sets out different payment terms, the SOW prevails for that project.

Clear payment terms protect both parties. We are committed to transparency: you'll always know what you owe, when it's due, and what happens if there's a problem.

2. Currency & Pricing

2.1 Default Currency

All fees are quoted and invoiced in [CURRENCY — e.g., Canadian Dollars (CAD) / US Dollars (USD) / Euros (EUR)] unless otherwise specified in the SOW.

2.2 International Clients

For clients outside [Agency's country], fees may be invoiced in [CAD/USD/EUR] at the Agency's discretion. Currency conversion, wire transfer fees, and any bank charges are the sole responsibility of the Client.

2.3 Price Validity

Quoted prices in proposals and estimates are valid for 30 days from the date of issue. After this period, the Agency reserves the right to revise pricing to reflect changes in project scope, resource availability, or market conditions.

2.4 Tax Exclusion

Unless otherwise stated, all quoted fees are exclusive of applicable taxes, including but not limited to:

• GST/HST (Canada)
• VAT (EU/UK)
• Sales tax (USA)
• Any other applicable local, regional, or national taxes

Applicable taxes will be added to invoices based on the Client's billing address and applicable law.

3. Project Fee Structure

3.1 Fixed-Price Projects

Most projects are priced on a fixed-fee basis as specified in the SOW. Fixed fees cover the scope of work described in the SOW and the included revision rounds. Work outside scope is subject to Change Orders and additional fees.

3.2 Time & Materials Projects

Some engagements — particularly consulting, strategy, and complex AI builds — may be billed on a time-and-materials basis. For such engagements:

• Fees are billed at the hourly rates specified in the SOW
• The Agency will provide weekly or bi-weekly time logs upon request
• No cap on hours applies unless explicitly stated in the SOW
• Clients may request a not-to-exceed estimate for defined phases

3.3 Retainer & Ongoing Services

Monthly retainers for maintenance, hosting, and ongoing services are billed as a flat monthly fee as specified in the SOW or the Maintenance & Support Agreement. Retainer fees are fixed for the agreed term and subject to a minimum 30-day cancellation notice.

4. Deposit Policy

4.1 Deposit Requirement

A non-refundable deposit is required before any project work begins. The deposit amount is:

A different deposit percentage may be stated in the SOW, which takes precedence.

4.2 Deposit Non-Refundability

Deposits are non-refundable as they compensate the Agency for:

• Reserving project capacity and turning away other engagements
• Initial discovery, planning, and project setup work performed upon signing
• Administrative processing and contract management costs

The refund exceptions outlined in the Refund & Cancellation Policy (WBL-POL-RCP-v1.0) apply.

4.3 Work Does Not Begin Until Deposit Is Received

The Agency will not commence any work — including discovery calls beyond initial scoping, design work, development, or strategy — until the signed SOW and the deposit payment have both been received.

5. Milestone-Based Payment Schedule

5.1 Standard Milestone Structure

For fixed-price projects, the project fee is divided into milestone payments tied to project phases:

The exact milestone schedule is confirmed in each SOW.

5.2 Gate-Based Progression

Each milestone payment is a gate. The Agency will not proceed to the next phase until:

(a) The Client has formally approved the current phase deliverables, and (b) The milestone payment for that phase has been received in full.

This protects both Parties: the Client controls the progression; the Agency ensures financial security before committing additional resources.

5.3 Milestone Payment Triggers

Milestone payments are triggered upon the earlier of:

• Written approval by the Client of the relevant phase deliverable, or
• Deemed acceptance per the SOW review process (Client fails to respond within the review window)

6. Invoicing

6.1 Invoice Issuance

Invoices are issued:

• Deposit invoice: Immediately upon SOW signing
• Milestone invoices: Upon completion of the trigger event (Client approval or deemed acceptance)
• Retainer invoices: On the 1st business day of each billing month
• Time & materials invoices: [Weekly / Bi-weekly / Monthly — per SOW]
• Expense invoices: As incurred, after Client approval

6.2 Invoice Delivery

Invoices are delivered electronically via email to the Client's designated billing contact. The Client is responsible for keeping the Agency informed of any changes to billing contact details.

6.3 Invoice Contents

Each invoice will include:

• Webility's business information and tax registration number
• Client's billing information
• Invoice number and date
• Payment due date
• Itemized description of services or expenses
• Subtotal, applicable taxes, and total amount due
• Payment instructions

7. Payment Terms

7.1 Standard Payment Due Date

All invoices are due and payable within 15 calendar days of the invoice date ("Due Date"), unless otherwise specified in the SOW.

7.2 Enterprise Clients

For enterprise clients (contracts over $25,000 or clients with established credit relationships), the Agency may agree to extended payment terms of Net 30 upon written agreement in the SOW. Net 30 terms require credit approval by the Agency and may require a personal or corporate guarantee.

8. Accepted Payment Methods

The Agency accepts the following payment methods:

Cash is not accepted.

The Client bears all banking, transfer, and processing fees associated with their chosen payment method. Payments must be received in full (net of any transfer fees) by the Due Date.

9. Late Payment

9.1 Late Payment Interest

Any amount not received by the Due Date will accrue interest at the rate of 1.5% per month (18% per annum), or the maximum rate permitted by applicable law, whichever is lower. Interest accrues daily from the Due Date until the date full payment — including all accrued interest — is received.

9.2 Suspension of Services

If any invoice remains unpaid after the Due Date, the Agency may — at its sole discretion and without further notice — suspend all work on active projects until all overdue amounts (including accrued interest) are paid in full. During any suspension:

• Project timelines are extended by the duration of the suspension, without penalty to the Agency
• Maintenance and hosting services may be suspended, and the Agency is not liable for any resulting downtime

9.3 Withholding of Deliverables

The Agency may withhold delivery of final Deliverables, source files, credentials, access transfers, or any other project assets until all outstanding balances have been received in full. The Agency is not in breach of any obligation by exercising this right.

9.4 Collections & Legal Costs

If any invoice remains unpaid for more than 30 days past the Due Date:

(a) The Agency may refer the matter to a third-party collections agency or legal counsel; (b) The Client shall be responsible for all reasonable costs of collection, including attorney fees, court costs, and collections agency fees; (c) The Agency may terminate the MSA and all active SOWs in accordance with MSA Section 12.4.

9.5 Credit Reporting

The Agency reserves the right to report chronic non-payment to applicable credit bureaus or industry databases where legally permitted.

10. Disputed Invoices

10.1 Dispute Notice

If the Client disputes any portion of an invoice, the Client must:

(a) Submit a written dispute notice to billing@webility.local within 7 calendar days of the invoice date; (b) Specify clearly which line items are disputed and the basis for the dispute; (c) Pay all undisputed amounts in full by the Due Date.

Failure to submit a dispute notice within 7 days constitutes acceptance of the invoice in full.

10.2 Resolution

Upon receipt of a valid dispute notice, the Parties shall:

1. Meet (in person or virtually) within 5 business days to review the disputed items;
2. Work in good faith to resolve the dispute within 15 business days of the dispute notice;
3. If unresolved, escalate through the dispute resolution process in MSA Section 16.

Interest does not accrue on genuinely disputed amounts during active good-faith resolution, but does accrue if the dispute is determined to be unfounded.

11. Expense Reimbursement

11.1 Pre-Approval Required

The Agency will seek written approval before incurring any reimbursable expense on the Client's behalf exceeding $150 [CURRENCY].

11.2 Reimbursable Expenses

Reimbursable expenses include, but are not limited to:

• Third-party software licenses, plugins, and platform subscriptions required for the project
• Stock photography, illustration, icon packs, or video with per-project licenses
• Font licenses for web or print use
• Domain registration and SSL certificates (if purchased by Agency on Client's behalf)
• Paid API usage (e.g., AI API costs beyond the included development budget)
• Travel and accommodation (only if required by the project and pre-approved in writing)
• Printing and physical production costs

11.3 Mark-Up

Unless otherwise agreed in the SOW, reimbursable expenses are invoiced at cost + 10% to cover procurement administration.

11.4 Ongoing Subscriptions

Third-party tools and subscriptions required for the delivered product to function (e.g., hosting, AI API keys, SaaS platforms) are the Client's ongoing responsibility after project handover. The Agency is not responsible for cost overruns on Client-operated platforms.

12. Pre-Paid Plans & Packages

12.1 Pre-Payment Discount

Clients who pre-pay for multi-month retainer packages may be eligible for a discount as specified in the SOW. Pre-paid amounts are non-refundable after 30 days except as outlined in the Refund & Cancellation Policy.

12.2 Package Expiry

Prepaid hours or service packages expire 12 months from the date of purchase unless otherwise stated in the SOW. Unused hours or service credits after expiry are forfeited.

13. Financial Records & Confidentiality

The Agency maintains confidential financial records for all client engagements. Invoice amounts and project financials will not be disclosed to third parties without Client consent, except:

• As required by law, tax authorities, or court order
• In connection with the Agency's accounting and legal advisors (bound by professional confidentiality)
• In collections or legal proceedings if necessary to recover unpaid amounts

14. Changes to Payment Terms

The Agency may update this Policy at any time. Updated terms apply to new SOWs signed after the update date. Ongoing retainer agreements are subject to 30 days' written notice before any updated payment terms take effect.

15. Contact

For all billing inquiries, payment confirmations, and invoice disputes:

Webility — Billing Email: billing@webility.local Website: webility.local

Note: This Policy is a client-facing document incorporated into all Webility contracts. Questions about payment terms for a specific project should be directed to your project lead or our billing team.

Webility — WBL-FIN-PT-v1.0 | Effective [DATE]