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Posting a New Software Development Project.

Active Member
Graham E Member Since: Aug 7, 2017
1 of 9

I’m about to set up a project for the development of a software application.

 

I want to set the project up as a ‘fixed price’ project, mainly because I can set up milestones based on the specific work being done for specific $ paid (with an ‘hourly rate’ project I don’t have any real protection)

 

My intention is to set up milestones along these lines.

 

For example.

 

Say the fixed price of the project is $1500.

 

I would pay $300 to start the project.

 

I would pay $300 as a second milestone when a working user interface is delivered.

 

I would pay $900 when a fully functioned bug free application is delivered along with the full source code for the app.

 

Does this sound like a fair and reasonable approach?

 

Any suggestions would be appreciated

 

Thanks

 

Glen

Community Guru
Preston H Member Since: Nov 24, 2014
2 of 9

Glen,

I think your plan would be accepted by many Upwork freelancers.

 

The numbers you specified may strike many as "lowball," but I say that without knowing what the app actually does. Of course, this is just and example, and when you post your job you'll provide a more detailed description about what it entails.

Community Guru
Preston H Member Since: Nov 24, 2014
3 of 9

I disagree that an hourly rate offers you no protection.

 

Both contract models have protection. Both have advantages and disadvantages.

 

An hourly rate is actually more flexible, and gives you more freedom.

 

If you hire using an hourly rate and decide you don't like the freelancer or her work, you can end the contract immediately. No questions asked. There is nothing the freelancer can do about it. Remember that with an hourly contract you can see screenshots of the freelancer doing the work on the computer. You can set any number of maximum hours per week that you want, including just 1 hour. There is much opportunity to view a freelancer's work, review it, pause the contract if needed, and end it, all at your will.

 

If you hire using a fixed-price contract, there is no way for you to end the contract without a dispute being filed unless one of these things happens:

- You release ALL the money in the funded milestone escrow to the freelancer.

- You ask for some or all of the money to be refunded to you, and the freelancer needs to agree

 

What will you do if you fund a $300 milestone to pay a freelance to work for you... and the freelancer doesn't do very much work on the project, but also refuses to let you have the money back?

Active Member
Graham E Member Since: Aug 7, 2017
4 of 9

What will you do if you fund a $300 milestone to pay a freelance to work for you... and the freelancer doesn't do very much work on the project, but also refuses to let you have the money back?

 

*********************

 

Funding the $300 would be escrowed in the first instance, and I so would not approve the relase of those escrowed funds until the milestone conditions are met.

 

In that instance it would be easy for me to prove to Upworks that the freelancer has not met the agreed milestone conditions, in which case the funds escrowed would be released back to me.

 

Moderator
Vladimir G Moderator Member Since: Oct 31, 2014
5 of 9

Hi Graham,

 

Please review the Payment Protection programs we offer for both Fixed-Price and Hourly contracts, and note freelancers are paid for their time on Hourly jobs and not for the product they deliver.

Active Member
Graham E Member Since: Aug 7, 2017
6 of 9

Thanks for that reply.

 

When you say 'lowball' I assume you mean my hypothetical project value of $1500?

 

Or do you mean the $ values I placed on the different milestones?

 

My idea was to set milestone percentages based on the fixed price value (whatever that might be).

 

For example.

 

30% paid on contact start

30% as a second milestone when a working user interface is delivered.

40% when a fully functioned bug free application is delivered along with the full source code for the app.

 

Reasonable?

 

 

 

With ‘hourly rate’ projects, how am I protected IF the freelancer walks away from the project part the way through it?

 

Suppose I’ve paid the freelancer $500, and he walks away from the project.

 

I would have to cancel the contract, but then how do I get my money back from him?

 

Going through the Upwork’s dispute process doesn’t offer any help to me, because as I see it, if the Freelancers refuses to pay back moneys paid, Upworks can really do nothing about that.

 

//Glen

Community Guru
Preston H Member Since: Nov 24, 2014
7 of 9

I think $1500 for a typical mobile app is lowball. But it is fine for a simple app. As I said, I realize these are hypothetical numbers.

 

I do NOT think $300 is low for a first milestone. It is too high!

 

For a first time experience with a freelancer, you should do a small phase, to see how things work out. To make sure their work is legitimate and they're not some kind of scoundrel. So I suggest start with no more than you can afford to lose. Maybe $150 at the most.

Community Guru
Preston H Member Since: Nov 24, 2014
8 of 9

re: "In that instance it would be easy for me to prove to Upworks that the freelancer has not met the agreed milestone conditions, in which case the funds escrowed would be released back to me."

 

That is not how it works. You can not simply "prove" things to Upwork.

 

Upwork is not going to examine the freelancer's work and make a determination based on who is right and who is wrong.

 

If you file a dispute, Upwork will tell you to communicate with the freelancer and negotiate an agreement that you both can accept. If you can't do that, things escalate to mediation and arbitration, which costs you $290.

 

Some me people here can explain the whole process better than I can. You can look at the help page documents. But the main point is this: Upwork doesn't review or evaluate a client's requirements and a freelancer's submitted work and then make a determination about who is right and who is wrong and whether the requirements were met or not. Many clients and freelancers think that is what happens during a dispute. It is not.

Community Guru
Preston H Member Since: Nov 24, 2014
9 of 9

re: " Suppose I’ve paid the freelancer $500, and he walks away from the project. I would have to cancel the contract, but then how do I get my money back from him?"

 

You don't get money back. Why would you get money back? He already worked all the hours that you were billed for and you already own all of the work that was done during that time.

 

But if you use fixed-price contracts, you don't get any money back either. If you release any payments to the freelancer, that's it. The money is gone. But you keep all the work that was submitted to you. So in this regard it is the same, essentially.

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