Client requested refund for the completed Milestone

[igor-galitskiy]

Dear Colleagues!

Good day!

I ask you kindly to give advice - how to win a dispute with a Client who refuses to pay for the Work performed.

I have a fixed price contract. The Client had not previously worked at the Upwork and his rating had been unknown.

I suggested dividing the Contract into three Milestones. The Work Plan and Work Program have been approved by the Client after the first Milestone.

The Client paid for the work done for the first and the second Milestones.

However, a day after receiving the final Work performed for the third Milestone, the Client reported that the Work was not what he wanted and that the Work did not meet some requirements of the Contract.

I am very sure that my Work was done with a high quality and the results of the Work logically followed from the works of the Milestone 1 and 2.

After that the Client asked a couple of questions regarding the report conclusion about further research program (!), to which I answered him quickly and professionally.

But on the 14th day after my submission of the Work, the Client ended the Contract without any comment and demanded a full refund of the Milestone 3 cost (Escrow Refund Request)

I have not answered the Client yet; as I understand that the Client does not behave adequately and just wants to get the Work done for free.

As I think, a Dispute process will be appointed with the participation of an Upwork specialist.

Is there an opportunity for me to win the Dispute and what actions do you recommend?

If the Dispute does not resolve the problem, then an Arbitration process will be initiated, for which a Freelancer will have to pay about $ 300.

Will there be additional fee or expenses for the Freelancer during the Arbitration?

And will the Freelancer get that $ 300 back if he wins the Arbitration?

Thank you for your help!

With many best wishes,

Igor G.

St. Petersburg

[AndreaG · Accepted solution]

Hi Igor,

Please know that you have seven days to respond to the refund request. If you decide to dispute, you'll enter a mediation process with an Upwork dispute specialist. Users can usually come to an agreement among themselves, but if the parties are unable to agree in a reasonable period of time, the dispute specialist will make a non-binding recommendation. If that recommendation is rejected, the final option is to proceed to arbitration. See the Upwork Escrow Fixed-Price Instructions for more details, including the Escrow Dispute Assistance Policy.

The fee for Arbitrations by the AAA is $875. Each of the Dispute Parties and Upwork will share the cost equally ($291 each).

[igor-galitskiy]

Dear Andrea,

Thank you for your advice and explanation!

Kind regards,

Igor

[colettelewis]

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Igor G wrote:

Dear Colleagues!

Good day!

I ask you kindly to give advice - how to win a dispute with a Client who refuses to pay for the Work performed. I have a fixed price contract. The Client had not previously worked at the Upwork and his rating had been unknown. I understand that the Client does not behave adequately and just wants to get the Work done for free. [...]

As I think, a Dispute process will be appointed with the participation of an Upwork specialist.

Is there an opportunity for me to win the Dispute and what actions do you recommend?

If the Dispute does not resolve the problem, then an Arbitration process will be initiated, for which a Freelancer will have to pay about $ 300.

Will there be additional fee or expenses for the Freelancer during the Arbitration?

And will the Freelancer get that $ 300 back if he wins the Arbitration?

Thank you for your help!

With many best wishes,

Igor G.

St. Petersburg

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_____________________________

Hi Igor, 

If the client has refused to release the funds but has closed the contract with your due payment still in escrow, then you will have to open a dispute yourself. However, you must do this within 7 days of the client closing the contract otherwise the money will automatically revert to the client.  Have a look here particularly 4.4.1 https://www.upwork.com/legal#fp and this help page, which is clearly laid out as to the steps you can take in the event of a dispute. https://support.upwork.com/hc/en-us/articles/211068528-Dispute-Non-Release-of-a-Milestone-Payment

Arbitration fees are not returned.

I hope this helps and don't give in.  You have done the work and you should be paid. 

[igor-galitskiy]

Dear Nichola,

Thank you!

I will study that links and I hope it will help to get the payment for the performed work.

With many thanks for your good wishes,

Igor