Escrow Funds

[kathy1010]

Hi. I just have a question to avoid possible problems in the future. I have a job for $300. The client put $100 in escrow. Should I worry about him putting the rest in escrow when the time comes? Thanks. Appreciate the help. Virginia

[williamtcooper]

Hi Virginia,

Is this for multiple Milestones of $100 each?

For example if it is by Milestones of $100, the client will fund them one at a time as work is submitted and approved.

[kathy1010]

No. Not multiple milestones. I try risk doing 1/3 of the work and ask for the rest. Does that sound appropriate?

[prestonhunter]

re: "No. Not multiple milestones. I try risk doing 1/3 of the work and ask for the rest. Does that sound appropriate?"

You are welcome to do 1/3 of the work and then ask for the rest.

If $100 is funded in escrow, then $100 is how much you will get paid.

Just keep in mind that there is no such thing as "one-third."

There is $100.

So if you are planning to do 1/3 of the work, and get paid $100, that is totally appropriate.

[prestonhunter]

re: "Hi. I just have a question to avoid possible problems in the future. I have a job for $300. The client put $100 in escrow. Should I worry about him putting the rest in escrow when the time comes?"

No.

You should NOT worry.

A man went to a restaurant.

The restaurant had on its menu appetizers, main dishes, and desserts.

The man said that he was going to order appetizers, and then after he ate them, he would order a main dish, and then he would order a dessert.

Should the restaurant worry that the man might not order all three?

No.

The restaurant should NOT worry.

This man ONLY ordered appetizers. He paid for the appetizers, and then he left

This is fine!

The man did NOT order a main dish or a dessert. He did NOT pay for a main dish and a dessert. But the restaurant did not MAKE a main dish or dessert for him.

IF you have "a job for $300", but the client only pays you $100...

That is fine!

Because you only did $100 worth of work.

So don't worry.

[13faf8d4]

Hello dear ,

 Go ahead and do the job . what the client put on the screen doesn't matter.

whatsoever you agree with the client is what matters.

[prestonhunter]

Kingsley is totally correct.

If you see that the job is for $300... Just ignore that.

The only thing that matters is the money in escrow: $100

[kathy1010]

But should I ask for the rest after completing 1/3 of job? Thanks

[prestonhunter]

re: "But should I ask for the rest after completing 1/3 of job?"

If you want to do more work after completing 1/3, then the client needs to fund more money in escrow.

It shouldn't really matter to you either way.

You got paid $100 for $100 worth of work.

You are WELCOME to ask the client to fund another milestone.

Or don't ask. let him be the one to propose doing more work.

The key thing is that you aren't going to do more work until more escrow is funded.

[kathy1010]

We agree to $300

[prestonhunter]

re: "We agree to $300"

But that doesn't matter at all.

There is no difference between you agreeing to $300 and you agreeing to $3 million. It is meaningless.

[13faf8d4]

Hi 

you know what you want .just do your heart 

[yofazza]

So you should do 1/3 of the job.

Then you click Submit Work for Payment.

Then wait for the next milestone to be funded before proceeding.

[kathy1010]

That is what I kind of figured. Thanks.

[8467c28e]

Virginia,

When a client puts money in escrow, it means they are committed to paying for the service or product provided. However, to avoid any potential issues, you should clarify the payment terms with your client before starting the job. You can ask them about their payment schedule and when they plan to put the remaining $200 in escrow. It's always better to have a clear understanding of the payment terms upfront, to avoid any misunderstandings or disagreements down the line. You may also want to consider adding a clause in your contract or agreement that outlines the payment terms and escrow requirements. If you have any doubts or concerns about the payment arrangements, it's best to discuss them with your client to ensure everyone is on the same page.