Direct Client wants to cancel project

[#1]

Hello, I was wondering if I could get some advice. 

I have a client on Direct Contracts (fixed rate) who thought he was getting 8 clothing designs when he actually agreed to only 4 designs. The number of designs was made very clear from the beginning on my end, with a detailed proposal and clarity on what he would be receiving. He says it was unclear which I completely disagree with, I think he just didn't read it properly.

I had a question about the 4 designs so we had a phone call and this is when he realised he was getting 4 and not 8. He asked me to send him a quote for the remaining 4, which I did. He then replied saying the cost for all 8 is above his budget and he no longer wants to continue with any of the designs. However, this is around 3 weeks after the contract for the 4 designs was set up and funded, and I have already carried out a large portion of the project: 

- Analysis of questionnaire

- Design Brief

- Competitor Research

- Design Research

- Brainstorming

- Mood Board planning

- Design Planning

However nothing has been submitted yet.

I was wondering whether to simply cancel the contract, but it seems unfair that I have spent time on his work and not been compensated for it. 

Any advice on what I should do would be appreciated!

[#2]

Im not sure exactly how 'direct clients' work on Upwork, I assume you mean someone you have introduced to the platform? do you have milestones setup/money in escrow?

Basically if you have been clear about the bid being for 4 designs, and have done the work then you should be paid, its that simple. If on the other hand it is genuinely questionable how clear it was then thats a different matter. Did you send a bid for the job and have written proof in an email/message showing the stipulation of 4 designs? if so then this should be adequate for payment for those 4 designs. If not then I guess its a bit more subjective.

EDITED TO ADD:

I have just checked how it works, you are paying a 3.4% charge to upwork ion the value of the contract for a service, part of that service is escrow, so I assume you have only done work upto the level of whatever milestone you have setup? If your terms were clear on it being 4 designs then there should be no issue in getting paid for what you have done.

From what you have said, I get the impression you have not actually done the 4 designs yet, just some prep work?

If so, I would offer to cancel the contract but state that you will need to be paid $XXX for the work you have already completed. 

Give the client time to respond to this, then depending on what they say, I would submit the work via upwork for the amount agreed, once that is accepted by the client and you are paid you can then cancel the remainder of the contract.

[#3]

Also, id try to keep as much communicstion on the upwork messaging system as possible (not sure if you can with a direct client) as it will make things easier if you need to enter a dispute,

[#4]

Thanks for your reply.

Yes we have a milestone set up and money currently in escrow.

The number of designs is absolutely clear and written in the Upwork contract as well as in the emailed proposal and in our messages. There's no doubt about that (if it was unclear on my side I would be happy to give the refund). They have mistaken 4 clothing designs for '4 sets/looks', which would be 2-pieces each so 8 designs altogether. However this was clarified by me in the beginning: "For Phase 1 I have quoted for 4 designs (please note this means 4 garment designs as opposed to 4 looks)"

The work for the milestone hasn't been completed though, its half done, which is why I can't submit the file and request the payment. It's only partly done with the elements I mentioned previously, which I think I should be compensated for as it's not my fault they want to cancel this far into the project. But not sure how to go about this.

[#5]

Thats ok, message the client tell them you are happy to cancel (if you are) but need to be fairly compensated for the work you have completed so far. You can then submit work for payment, but instead of requesting the full amount, you can request whatever amount you agree/feel is fair for the work you have done (assuming it is lower than the milestone obviously)

[#6]

This sounds like the best thing to do but on direct contracts I don't think you're able to request a smaller amount of what's in escrow, it only gives you the option to request the full payment. So I assume the only thing i can do is set up another contract for a smaller amount and ask them to fund that? I don't see them agreeing to that though.

[#7]

ah ok, wasnt aware of that (though it seems a bit strange) in that case I would personally offer the option to pay me $xxx first, once received we can cancel contract in upwork OR complete project, OR submit for payment, state client has requested to end contract and you are happy to if you are paid, then they can eaither pay you the full amount or dispute it. At the point of dispute i think Upwork will get involved and you should then be able to say I would accept $xxx as part payment for the work done

[#8]

Ok just seen the bit you added and that makes sense.  Communication has be through email for direct contracts though, so I assume he will just ghost me and cancel the contract on his end. But worth a try!

[#9]

The contract cant be fully canceled from clients end without your agreement. The money is in escrow specifically to ensure you get paid, so it shouldnt be an issue. Worst case is it takes a while to sort out through mediation, but with the specific "For Phase 1 I have quoted for 4 designs (please note this means 4 garment designs as opposed to 4 looks)" line, i dont see there can be any doubt that you should be paid. (i'd obviously also add that im happy to complete the job if they dont want to pay for just part of it)

[#10]

Hello, I wanted to give an update on this.

The client is still claiming that the number of designs was unclear, even though I have emailed them showing the evidence that it was absolutely clear from the beginning. 

He is now also arguing that I didn't have a design consultation call with him straight after the project started and that this was included in my proposal. He's correct, however I felt I didnt need the call here because we had a detailed initial call before the project started and he had provided lots of details about the designs, so I didn't have any questions at this point. In hindsight, I stated this was included in the package and I didn't do it, so this is a mistake of mine. He is arguing that if I had done this call, I would have found out earlier that he had understood the number of designs differently. I agree with this, but this doesn't take away from the fact that he accepted and funded the contract based on 4 designs.

As I have made a mistake with not doing the second consulation call, I am wondering if I should just issue the full refund. But not sure if I'm being too nice by doing that! Any advice appreciated, thank you.