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CLIENT REFUSED TO RELEASE THE FUNDS ON THE COMPLETION OF MILESTONE

brandfish
Active Member
Omair A Member Since: Sep 17, 2015
1 of 10

Dear Upwork Support

 

I am currently in contact with **Edited for community guidelines**

 

We have started the contract with clear terms that the animation will go in 3 phases and he has to release the milestone on each stage when he approves. 1st phase will be theme and storyboard which he approved after multiple revisions and upon asking for releasing funds, he refused and asked for the final files which are not possible because we have agreed on 2D animation, not the source file, However, I am agreed to deliver the source files but after completion of the whole project but he is not releasing the milestone. 

 

Furthermore, He is now talking on 3D animation which was not included from the start even he doesn't know about the difference in 2D and 3D animation because the reference he has shown was 2D animation, we discussed 2D animation from the start.

 

Also, before starting the project, I have revised the complete offer in writing which he agreed and now he is completely denying from it. 

 

I request you to please look into this matter and educate him to stick to the agreed process.

 

Thanks.

lysis10
Community Guru
Jennifer M Member Since: May 17, 2015
2 of 10

Omair A wrote:

Dear Upwork Support

 

I am currently in contact with Mr. Raj Masud Forhad, Project title: Product Explainer Animation Video and Contract ID # 23695951. 

 

We have started the contract with clear terms that the animation will go in 3 phases and he has to release the milestone on each stage when he approves. 1st phase will be theme and storyboard which he approved after multiple revisions and upon asking for releasing funds, he refused and asked for the final files which are not possible because we have agreed on 2D animation, not the source file, However, I am agreed to deliver the source files but after completion of the whole project but he is not releasing the milestone. 

 

Furthermore, He is now talking on 3D animation which was not included from the start even he doesn't know about the difference in 2D and 3D animation because the reference he has shown was 2D animation, we discussed 2D animation from the start.

 

Also, before starting the project, I have revised the complete offer in writing which he agreed and now he is completely denying from it. 

 

I request you to please look into this matter and educate him to stick to the agreed process.

 

Thanks.


Your only option is to go into dispute.

brandfish
Active Member
Omair A Member Since: Sep 17, 2015
3 of 10

How?

wlyonsatl
Community Guru
Will L Member Since: Jul 9, 2015
4 of 10

Omair,

 

Has the client fully funded the first milestone?

 

Did you submit all of the work required under Milestone 1 to the client using the "Submit" button on the project page?

brandfish
Active Member
Omair A Member Since: Sep 17, 2015
5 of 10

Hi Will,

 

Thank you so much for your response.

 

Yes, Client fully funded 1st milestone and yes I have submitted the work on project.

prestonhunter
Community Guru
Preston H Member Since: Nov 24, 2014
6 of 10

Omair:

Maybe I'm misunderstanding your situation, or maybe you have not explained it fully.

 

I don't see what the problem is.

 

The client fully funded the first milestone, and you submitted the work for the first milestone.


That is how things are SUPPOSED to work.

 

Now you wait for the client to release the payment for the first milestone.

THEN the client will fund the second milestone.

Then you will do the work for the second milestone.

 

This is normal.

 

Do you have a question about this?

 

If the client funded the 1st milestone, and you submitted the work, then you are simply waiting for the milestone to release the first milestone payment.

 

Just wait. If the client does anything other than releasing that payment, then send him this note:

 

"Barney:
Thank you for your note. You are talking about something that is part of the second milestone. I'll get to work on that as soon as you release payment for the first milestone and fund the second milestone."

brandfish
Active Member
Omair A Member Since: Sep 17, 2015
7 of 10

Preston,

 

The problem is the client refused to release the amount and asking for the source file which we do not agree. We have agreed on the final 2D animation but the client refused to release the payment on completion of 1st milestone.

prestonhunter
Community Guru
Preston H Member Since: Nov 24, 2014
BEST ANSWER
8 of 10

Omair:

A client does not have a right to change the terms of a fixed-price agreement.

This client is behaving unprofessionally.

 

How much money is associated with this first milestone?

 

If it was me, I would tell the client the

"Barney,

I have completed the original task. You may release the escrow payment for this, and the work for that milestone will belong to you. Or you may close the contract and request a full refund. If you want to stop working with me, then you may request a full refund, and I will grant it, and the work done for the first milestone will belong to me. I would be happy to have you request the refund, because I would like to put this work into my online portfolio. I worked hard on this, and I am very fond of the work."

 

 

=====

Omair:

This is what I would do. But I am not saying this is what YOU should do.

In the kind of work I do, clients are very fortunate if they have an opportunity to work with me, and they know this. So clients do not risk losing my good favor. They don't want to mess things up and risk having me leave the project.

 

What I don't do is let clients abuse the fixed-price contract model by agreeing to a certain task, and then not releasing payment for that work when it is done.

 

If you are not willing to walk away from the payment like this, then you will need to file a dispute. A dispute means that an Upwork mediator will attempt to get you and the client to come to an agreement.

View solution in original post

wlyonsatl
Community Guru
Will L Member Since: Jul 9, 2015
9 of 10

Omair,

 

There is no reason a client can't change their mind about a fixed price project, but you can't allow them to do it in a way that is detrimental to you.

 

If the client has now fundamentally changed the end product and milestones you will require to finish the revised work product fo the project, and you still want to work for him, tell him the existing contract structure is not appropriate for the changes he wants to make, so you both need to agree to a new contract.

 

If he can't agree that changes you require do to the new work product are necessary, he still owes you for the work you completed under MIlestone 1. Don't agree to let him get away with not paying you for that work.

 

As part of negotiations for this completely new contract you can agree to accept payment for some, all or none of the milestone you have already completed for the existing contract - that is your business decision. (If you agree to take less than full payment on Milestone 1, have that new contract in place on Upwork's system and the new MIlestone 1 fully funded before you agree to the release of any of the original project's escrow back to him. The 14-day automatic escrow release clock has been started, so, as far as Upwork is concerned, the full amount of Milestone 1 is still available for eventual release to you.)

 

I have had only one fixed price client who initially agreed to a set of specific milestones culminating in a final product and then, once I began work on his project, he said he wanted to pay for all of the agreed milestones only after the final product was delivered by me. After a couple of hard "No" answers from me, he cancelled the project. He had a number of cancelled projects in his Upwork history, so I think this was a game he regularly played with freelancers who had the misfortune to agree to work with him.

 

That client was clearly dishonest. That is not true of every client who changes their mind. 

 

Good luck.

prestonhunter
Community Guru
Preston H Member Since: Nov 24, 2014
10 of 10

I agree with Will.

 

Of course clients can change their mind about a fixed-price contract or milestone.


This is how a client can change their mind about a fixed-price milestone or contract:

- Send a short message to the freelancer: "Natalie, I changed my mind about this. I'm releasing the money and closing the contract and then I'd like to talk to you to see if you will help me with my new idea."

- Release all money currently in escrow.

- Close the contract.

- Talk to the freelancer to see if she is interested in continuing to work with you on your new idea.

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