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Fixed contract on hold after submitting milestone - do I get paid?

Hi,

 

so I did a short project on a fixed price contract, thinking I'm safe because the funds are put in escrow. However, after submitting the work, client of course doesn't respond anymore and doesn't approve the milestone.

I thought I'm still ok because of the escrow. However, now I get the notification that the contract is on hold due to client payment issues.

Do I still get paid or am I looking at sunk costs?

5 REPLIES 5
g_vasilevski
Retired Team Member
Retired Team Member

Hi Johan,

I`m sorry about the inconvenience this had caused you. I checked your account and your contract and I can see that our team is working with your client on resolving this as soon as possible, unfortunately I can`t share more details with you about another user. If you have any additional questions feel free to post them here, thank you.

~ Goran
Upwork

Thanks for your answer.

What I'm wondering is the escrow arrangement on fixed price contracts. I had in mind that fixed price contracts where safe from non-paying clients due to the funds being in put in escrow and if the client becomes non-responsive, at least the funds are available.

Am I right in this assumption?

Hi Johan,

 

To leanr more how you`re protected on fixed price contract check out this Help Article. Thank you.

~ Goran
Upwork

Thanks for the info.

 

Any update on my case that you know of?

kat303
Member


@Johan D wrote:

Hi,

 

so I did a short project on a fixed price contract, thinking I'm safe because the funds are put in escrow. However, after submitting the work, client of course doesn't respond anymore and doesn't approve the milestone.

I thought I'm still ok because of the escrow. However, now I get the notification that the contract is on hold due to client payment issues.

Do I still get paid or am I looking at sunk costs?


 If the contract is on hold due to client payment issues it could be as simple as updating the expiration date, or it could be that the client's card/account is closed, does not have sufficient funds, or is stolen.

 

Upwork is working with the client to resolve this. Usually the freelancer can also contact the client about this and try to resolve it, but since you say that the client is unresponsive, I don't think this is the case.

 

Do you still get paid or are you looking at sunk costs.... IMO, and I hope I'm wrong, but the fact that your client is unresponsive and has not released the funds in escrow I'll venture to say - you're looking at sunk costs.