Client not funding final project milestone (probably he's broke) - now what?

[comm]

Hello fellow Upworkers,

I delivered the first milestone of my $3000 project, a very good version of the software and it delivers what the client needs. To my knowledge there are no bugs, but there always are a couple. I received $2000 (minus Upwork fees of course).

Agreed-upon was that, after the first milestone was delivered, now the final bug-fixing stage would be funded ($1000) and delivered by me. Just that the client went quiet and never funded milestone 2.

Any tips how I can bring this project to a good conclusion (in terms of both getting the final $1000 and good feedback for me)?

I already asked the client many times, in ever-so-friendly and charming ways, to please fund the next milestone. He says, "yeah sure" but then doesn't do it, which usually means they don't have the money.

And why would he be in a hurry? He pretty much got what he wanted, perhaps there's a bug in there or two, but it's a pretty darn good version because I don't do any shoddy work.

And he got it for 2/3 of the price agreed-upon. If he disappears now, I have given the store away. Not cool. Also my bad to not have witheld any key features, stupid me.

Is the client under any obligation to see a project through? I don't think he is. So I have no recourse through Upwork, correct? If he disappears completely, just close the contract and walk away from the last $1000 milestone?

Any other tips, outside of social engineering some kind of understanding, which I am already trying?

Thanks!

[g_vasilevski]

Hi Jorg,

I would recommend to always make sure that the agreed budget is fully funded on your milestone before starting with your work. Please keep in mind that unfunded milestones and promised funds are not covered under our Fixed price protection for freelancers. To learn more about how you're protected, check out this Help Article. Thank you.

[petra_r · Accepted solution]

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Jorg S wrote:

the client under any obligation to see a project through? I don't think he is.

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No, he isn't

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Jorg S wrote:

So I have no recourse through Upwork, correct?

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You have no recourse, no.

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Jorg S wrote:

If he disappears completely, just close the contract and walk away from the last $1000 milestone?

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Make a plan for next time. Don't make milestones that could basically be seen as "optional". Bug fixing isn't a milestone. It's really part of the milestone where there are bugs. Milestones have to be defined, a vital part of the project and non-optional.

[prestonhunter]

A client hired me for a project.

He paid me to do various milestones. The last milestone planned was supposed to be $1000 to do the final step of the project.

The client ended the contract without funding the final milestone.

I don't care at all.

It is the client's project. It isn't my project.

This doesn't hurt me in any way.

I went to a restaurant.

I ordered an appetizer. I ate it.

I ordered the soup. I ate it.

I ordered an entree. I ate it.

I did not order dessert.

The funny thing, I had sworn earlier that I was planning to order dessert. But when it came time to order dessert, I was just too full.

I didn't order dessert. I did not pay for dessert.

That's fine.

[martina_plaschka]

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Preston H wrote:

A client hired me for a project.

He paid me to do various milestones. The last milestone planned was supposed to be $1000 to do the final step of the project.

The client ended the contract without finding the final milestone.

I don't care at all.

It is the client's project. It isn't my project.

This doesn't hurt me in any way.

I went to a restaurant.

I ordered an appetizer. I ate it.

I ordered the soup. I ate it.

I ordered an entree. I ate it.

I did not order dessert.

The funny thing, I had sworn earlier that I was planning to order dessert. But when it came time to order dessert, I was just too full.

I didn't order dessert. I did not pay for dessert.

That's fine.

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Not sure if your example truly captures the situation. I think it went more like this:

I went to a restaurant.

I ordered an appetizer. I ate it.

I ordered the soup. I ate it.

I ordered an entree. I ate it.

The waitperson put a dessert on my table by mistake. It looked good and I ate it. 

Later when I paid my check, I didn't mention the dessert, so I never paid for it. (I realize it's even hard to write this, since I'm a honest person and would never do that. But some clients do.)

Later the waitperson complained and I pretended I didn't even see him. 

[prestonhunter]

Obviously the waiter made a mistake by giving the patron a free dessert.

The GOOD THING about the situation is that this was the waiter's fault. This means that the waiter has all the power. All he needs to do in the future is to not give out free desserts.

[martina_plaschka]

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Preston H wrote:

Obviously the waiter made a mistake by giving the patron a free dessert.

The GOOD THING about the situation is that this was the waiter's fault. This means that the waiter has all the power. All he needs to do in the future is to not give our free desserts.

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Agreed. Plus the waiter needs to read the ToS. 

[2e395a62]

Hi there,

Yesterday I made my share of mistakes quite similar to yours and lost 1/100 of your loss and felt pretty angry about the client not funding the last milestone when the work was already delivered in full. So no, I cannot fully relate to your frustration - if I were you, I would be furious now. Sorry to hear that story, mate. 

All that is left on the table now are lessons to be learned. 

1. I don't know about your software (is it an e-store?), but whenever I offer a website (outside UpWork, freelance work for non UpWork clients), and the website or shop is ready, I put it on my server and on my domain, give the client limited access to it and let the client play with it for a while to check functionalities, design, UX, etc. Then we fix obvious bugs, if applicable, and the client pays the final part of the agreed payment. Once it is on my bank account, I transfer the website to his/her server. Think if you can play the game by similar rules. It doesn't work for other things, like anything I write - once the clients receive the written content before they paid for it in full, it is at their discretion if they paid the balance of what was agreed. So I prefer to be paid in full before sending the work or...I cross my fingers. Certainly, regulars usually pay, one-timers I try to persuade to pay in advance or by smaller milestones.

2. Some of the IT guys I met down the road told me that they always incorporate a little "explosive device" to be remotely "detonated" in case the last payment doesn't go through. Or leave an open, secret corridor they can sneak in on a later stage and leave a little reminder that there is a small payment still due. I am sure you get my drift here perfectly - I am not advocating for it as it is questionable from the legal perspective. Works beautifully, though. 

3. If option 1 is impossible, option 2 is questionable, then what is left is option 3: always allocate a max. of 10% of the total budget for fixing bugs. This is a golden rule in the building industry, at least here where I live - the investor keeps the 10% of the money until all the problems he spots in the building are fixed by the construction company. In your case, the last milestone should be $300

If I only was that wise two days ago....:) 

Tell yourself it was a promotion for the client and move on. A costly lesson but a good one. Think of every thriller movie, how the money and the other good (drugs, art, gold, arms, people) are being exchanged in the very same second. Same engine here. 

Cheer up!