I have a contract with a client that is signed and everything is great.

I did several mock-ups and they selected the one they wanted. I put forth the 
hours that
was outlined in the contract (Project Estimates) to add all their content and 
make it the
way they wanted. A few dyas prior to going live with the site, my client had a 
meeting 
with their board of directors. The Board members shot down the layout. They 
wanted 
something totally different. Therefore all development stopped and waited on 
confirmation
of the new layout.

Once I received the new requirements, the new layout was designed. However, at 
this point
the number of hours allocated to the project had been exceeded. 

In my contract I do have the paragraph:
-----------------------------------------------------------
4.3 Out of Scope Services and Lost Time.   If the Statement of Work indicates a 
fixed payment, then such payment is subject to additional fees due to: (a) the 
performance of services beyond those described in the Statement of Work; or (b) 
delays or additional costs incurred by Developer as a result of Client's 
failure to perform Client's obligations (collectively, the "Out of Scope 
Services").  The Out of Scope Services include, without limitation, (a) the 
performance of services other than those described in the Statement of Work; 
and (b) any commercially unreasonable time Developer stands idle as a result of 
any failure of Client to perform Client's obligations as described in Section 3 
of this Agreement (or otherwise pursuant to this Agreement).  All Out of Scope 
Services shall be chargeable to Client on a time and materials basis at 
Developer's then-current rates for such services.
-----------------------------------------------------------

Now based on that, my thoughts are to bill for the remaining balance of the 
contract and a new contract go in place (Time & Materials) to complete the 
remaining work. 

Does that sounds ethically and legally correct in doing so?  They want to have 
the site completed but I have exceeded the hours already and do not want to be 
taken advantage of.

Thanks!





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