Adding Milestones Increases Budget

[50eb2650]

I created fixed-price contracts and put the entire amount in escrow. Now I try to add milestones and it doubles the budget. The first milestone can't be changed and my freelancers are requesting full payment for only completing the first milestone!

So I create the project for $1,000 and put the full amount in escrow. Subsequently I try to go back and add project milestones, each one for a smaller amount, all totalling $1000. Now my project budget has gone to $2000.  There is no way to change the amount associated with the first milestone. My freelancers submit work and it requests payment of the entire $1000 "first milestone".

I can't afford to pay double price on these projects. Does anyone know a good workaround? This software interface is going to be a showstopper for me if I can't figure this out. 

Thanks,

Nosu

[petra_r]

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@Nosu P wrote:

I created fixed-price contracts and put the entire amount in escrow. Now I try to add milestones and it doubles the budget. The first milestone can't be changed and my freelancers are requesting full payment for only completing the first milestone!

So I create the project for $1,000 and put the full amount in escrow. Subsequently I try to go back and add project milestones, each one for a smaller amount, all totalling $1000. Now my project budget has gone to $2000.  There is no way to change the amount associated with the first milestone. My freelancers submit work and it requests payment of the entire $1000 "first milestone".

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 Yes, you've done it the wrong way round. You actually funded the entire project in one milestone.

What you should have done is set the milestones up one by one.

It's not that big a deal, your freelancer is probably happy enough that the full project is funded, and you can quite simply release it in milestones.

So what you have now is one milestone of $ 2000, right? Agree with your freelancer what the deliverables for the various stages (milestones) should be.

Say you want 4 milestones at $ 500 each.

Once the first milestone is reached, simple release the amount agreed ($ 500) - this releases the $ 500 to the freelancer. $ 500 goes to the freelancer, $ 1500 stays in Escrow.

Now set up milestone 2 for $ 500. It takes it from the funds in Escrow. Then, when milestone 2 is done, release $ 500 to the freelancer. $ 500 goes to the freelancer, $ 1000 stays in Escrow.

And so on. Remember that you can edit the amount you release for any milestone when you approve it.

In future set the milestones up one after the other while setting up the contract.

[davidatt]

I find no way to set up milestones while creating a job posting, so I have the same problem as the OP. How do you set up milestones "while setting up the contract"?

[g_vasilevski]

Hi David,

Once you start creating an offer for your freelancer you will be able to chose a fixed price and specify the terms of the milestone. To learn more about fixed price contracts and how to work with milestone check out this guide, to learn more how to add or activate a milestone check out this guide. If you have any additional questions feel free to post them here, thank you.

[davidatt]

Thanks, @Goran_V,

  As I understand things from the links, it seems that I can't set up the milestones while creating the job post, but only when I actually send out a hiring offer to the individual. Is this correct?

  Thanks

[g_vasilevski]

Hi David,

Yes that is correct. When you create your job post you will only be able to invite freelancers to apply on your job. Once a freelancer has accepted the invitation you will have the option to create an offer and set up a fixed price contract with milestone/s. Thank you.

[davidatt]

I find no way to set up milestones while creating a job posting, so I have the same problem as the OP. How do you set up milestones "while setting up the contract"?

Thanks