Jono, I require a 33% deposit to be included with the signed and returned contract.

Originally Posted by jono1 For instance, if I begin a design but for one reason or another are unable to complete it, is the client within their rights to ask for a refund?

My answer to your first question, in my contract the initial deposit is non-refundable. This is because usually to get to the stage of a signed contract and initial basic concepts takes a long time. The research that goes into each client and subsequent interviews/meetings take a very significant amount of time. This time has to be billed.

Originally Posted by jono1 Or, if halfway through the job the client decides to go with someone else do I have to refund them then, or am I entitled to keep the money because whether or not the site was finished I did do work on it?

My second answer would be "of course you keep the money!". It is not your fault and you shouldn't be penalised for a clients lack of committment. There is a cancellation clause in my contract that states the 33% deposit is kept by the Developer if the Client cancels or if the Developer cancels. There is also a possibility of additional costs to the lient in both cases when I have done more work than has been billed for up to that time.

Originally Posted by jono1 My main concern in all this is if I do take the deposit and something like this does happen but I don't refund them, I don't want to be labelled a scammer simply because I want to be paid for the work I've already done.

The only people that would label you a scammer would be kids. If you have a contract then you and your client are protected. If you decide to get deposits and cancel projects with no thought of a refund then you are a scammer. Be reasonable, as I know the courts will find out if you are unreasonable. If you have done work and there is a cancellation by either party then you are entitled to payment.