Releasing funds gradually to a freelancer

[John M]

I'm looking for advice on how to release funds to a freelancer in a block of 4 payments over the course of a month.

I have awarded a fixed contract and made an escrow payment to Upwork for the full amount of the contract.

I thought I'd be able to create 4 milestones and set the amount for release as each milestone is completed.

However when I do this it just adds the amount I set for release to the funds already in escrow, 

For example the fixed price of the job is $100 and I want to make 4 $25 payments over the month.

When I try to create a new milestone and set a $25 milestone payment it increases the cost of the fixed contract to $125.

Anyone know how I fix this? Do I have to cancel the contract and create 4 fixed contracts for $25? Surely not.

Any advice greatly appreciated.

[Avery O]

Hi John, 

When you submit an offer to a freelancer and create your first milestone, Upwork will collect an escrow deposit for this first milestone. On your Reports > Transaction History, you'll see an immediate fixed-price charge and corresponding payment from your primary billing method for the first milestone.

You have the option to make an escrow deposit for the whole contract amount or a smaller milestone. I suggest you create a smaller amount for the first milestone, and break up the rest of the contract's budget into several milestones. 

[Jennifer D]

If you've already deposited the whole amount, you can edit the amount you are releasing by clicking the little pencil button next to the amount in escrow when you pay the freelancer. The remaining funds will stay in escrow and be used to fund the next milestone you can set up once you pay the first one.

[John M]

Thank you both very much for the guidance. I had deposited the full amount so I'll be using your tip Jennifer, much appreciated.

[Jennifer D]

I'd also recommend communicating this with your freelancer, to make sure they understand why you only released a partial amount.