Escrow amount doesn't equal agreed upon fixed-rate amount

[susanwinlowmedia]

Hello,

I have another question regarding the situation I posed yesterday here in the forums. The client canceled the first hourly-rate offer and put in a new fixed rate offer this morning. The writing job pays $ABC but the amount put in escrow is $50 less. Why would this have been done and what ramifications does it have for me if I go ahead and accept it, as is? 

Thanks!

[prestonhunter · Accepted solution]

re: "The writing job pays $ABC but the amount put in escrow is $50 less."

Susan:
the job does NOT pay $ABC.

The job pays $ABC - $50

Just keep in mind that the budget does not matter. The amount discussed does not matter. The only thing that matters is what was put into escrow.

[susanwinlowmedia]

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Preston H wrote:

re: "The writing job pays $ABC but the amount put in escrow is $50 less."

Susan:
the job does NOT pay $ABC.

The job pays $ABC - $50

Just keep in mind that the budget does not matter. The amount discussed does not matter. The only thing that matters is what was put into escrow.

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I figured as much. I just wanted confirmation because it makes no sense, on a professional level, why the client would do this.

[tlbp]

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Susan W wrote:

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Preston H wrote:

re: "The writing job pays $ABC but the amount put in escrow is $50 less."

Susan:
the job does NOT pay $ABC.

The job pays $ABC - $50

Just keep in mind that the budget does not matter. The amount discussed does not matter. The only thing that matters is what was put into escrow.

---

I figured as much. I just wanted confirmation because it makes no sense, on a professional level, why the client would do this.

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Upwork clients' behavior does not always conform to our ideas of professionalism. If this client has already tried to over-negotiate on price, walk away. They are not going to be satisfied and you will regret doing business with them. 

[susanwinlowmedia]

I'm hoping I don't need to start a new topic for this one ... now, the client has added a second milestone to equal the entire rate - both due the same day. One for $ABC and the the second for the missing $50. Wouldn't this mean that one milestone could be approved but not the other? I mean, I'm in the same boat - he could approve the original milestone and not the other. Not saying he'd do that, but I haven't gained any ground, have I? Has anyone heard of this being done?

[feed_my_eyes]

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Susan W wrote:

I'm hoping I don't need to start a new topic for this one ... now, the client has added a second milestone to equal the entire rate - both due the same day. One for $ABC and the the second for the missing $50. Wouldn't this mean that one milestone could be approved but not the other? I mean, I'm in the same boat - he could approve the original milestone and not the other. Not saying he'd do that, but I haven't gained any ground, have I? Has anyone heard of this being done?

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There's nothing wrong with splitting up a project into more than one milestone, but it only makes sense if you're able to deliver exactly 50% of the work. You have to be wary because some clients will want to set up a milestone for revisions (even though revisions seldom comprise 50% of a project), or they say that they'll pay the full amount after the work has been approved; then the freelancer delivers the entire job within the first milestone and the client never does pay the balance. And you'll have no way to dispute any payments that weren't funded.

I'd say that if the project is simple enough to be completed in a single day, there should be no need to split it up. You can reassure the client that they'll still be able to request revisions after you submit the work.

[petra_r]

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Susan W wrote:

I'm hoping I don't need to start a new topic for this one ... now, the client has added a second milestone to equal the entire rate - both due the same day. One for $ABC and the the second for the missing $50. Wouldn't this mean that one milestone could be approved but not the other? I mean, I'm in the same boat - he could approve the original milestone and not the other. Not saying he'd do that, but I haven't gained any ground, have I? Has anyone heard of this being done?

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The problem with that is that the second one probably isn't funded, is it? And unfunded milestone is worth exactly the same as no milestone at all.

[petra_r]

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Susan W wrote:

I have another question regarding the situation I posed yesterday here in the forums. The client canceled the first hourly-rate offer and put in a new fixed rate offer this morning. The writing job pays $ABC but the amount put in escrow is $50 less. Why would this have been done and what ramifications does it have for me if I go ahead and accept it, as is? 

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You get paid $ 50 less unless the client adds and funds another milestone