If the client funded the project, can they release a partial payment somewhere during the scope of the project?
Let's assume the project is worth $100... And the client already funded that amount when the project started... Then later if I ask the client to release a partial payment let's say $50. Can they do it from their dashboard or they need to get a refund and fund the amounts again?
Please don't start shouting if that's a repeated question. I come from Elance and NO thanks, I'm not gonna spend hours searching forums to find the answer to my question. If you can help then I highly appreciate it. If you know the answer and my question bothers you then please keep the answer to yourself.
Solved! Go to Solution.
A client can release any amount they feel is appropriate, at any time.
A client may also issue a bonus at any time, as something separate from payment that completes payment for the contract.
Let's take your example:
A fixed-price contract was set up for $100.
At any time the client may pay you any amount, and conclude the contract.
The client could pay $50.
The client could pay $200.
The client could decide to pay nothing.
Payment of fixed-price contracts are at the discression of the client.
With hourly contracts, a client is obligated to pay you for the time that a contractor logs working on the contract.
If you work 10 hours, the client must pay 10 hours worth of pay.
The exception is when work diary screen shots show that you were not working on the project. In that case, the client can dispute that amount of time and have that time removed from what he owes the contractor. This must b done proactively within the defined review period (one week, if I recall correctly). By default, if the client does nothing, the payment will automatically be made to the contractor.
Great answer, Preston.
Thanks for taking the time to respond professionally to my question without adding odd questions. I find the Upwork community to be a bit offensive but luckily there seem to be some amazing people out there like you, so I'll keep an eye on the community. Thanks a bunch!
"Payment of fixed-price contracts are at the discression of the client."
Aren't fixed-price contracts supposed to be protected by escrow? It's a contract. Payment is agreed upon by both parties when the contract is made. It's not at the client's discretion at all; they agree to pay that amount when the work is completed, and as long as the freelancer completes the work they are obliged to pay it.
re: "Aren't fixed-price contracts supposed to be protected by escrow?"
Yes. The payments on fixed-price contracts are protected by escrow.
The payment money is guaranteed to be there.
The money IS IN ESCROW. It is accounted for. It is real money.
That doesn't mean, however, that the client must disperse that money to the contractor.
The contractor may award all of it or none of it, or some amount in between (or more) to the contractor.
If the contractor does not receive the money, it is not because the client can't afford it when the contractor submits his work. It will be because the client has made a decision to not disperse all of the money to the contractor.
The remaining money then goes back to the client when the contract is closed. It leaves escrow. It is not used as a kind of permanent floating account for the client to use with any and all contractors.
"It will be because the client has made a decision to not disperse all of the money to the contractor."
The client doesn't get to make that decision. The client has made a contract with the freelancer to pay an agreed sum in exchange for agreed work. The whole point of escrow is to take the agreed sum from the client beforehand just in case he "makes a decision" to welch on the contract.
If any of my clients "make a decision" to pay a lesser sum, then try to use the work I sent them, I'm going to file a DMCA takedown on them. A contract is a contract.
Well why you need the partial payment if its already funded and its already safe in escrow.I dont think so the client can pay the partial payment from that funded payment but if you stress him much he can pay you some by bonus.
May be someone in community can explain you in detail.
Edit to add.
You can go with Preston advice.
Sometimes a project gets on hold somewhere in the middle. A partial payment helps you get going with your business. The $100 project scenario was just an example. Now consider a project worth $5,000 where you ended 50% of the work and the client had to postpone the project for some time (getting out of town, getting feedback from their client, etc...).
Now consider that client had to postpone the project for a period of 2 months. Can you afford waiting 2 months for a $2,500 payment you have completed? I bet not.
P.S. I had a client on Elance where the job needed a week to complete, and the job literally took 4 months to terminate due to client's travel trips & long waiting periods from their client.
I am a freelancer not a client so I am not sure if the client have an option to realease a partial amount thats the reason i said i am not sure but I am sure that a client can pay you by bonus and i have mension in my post that someone from community can explain you in detail like the Preston said,
Hope it clears a bit.
The client has an option to edit the amount once they click "Release Funds." If they release more than is funded in Escrow, the system will release everything from Escrow and charge their payment method for the rest. If they want to release less, the remaining will stay in Escrow and can be released with the next milestone or refunded/disputed when the contract is closed.
I hope it helps.