How does escrow work?

[#1]

I have just started a contract for $**** but the client has only put in $**** 30% of the contract in escrow. How does it work when the is still 70% more to pay?

The is a milestone but the client has put most of the work into the first milestone.

[#2]

re: "I have just started a contract for $1000 but the client has only put in $300 - 30% of the contract in escrow. How does it work when the is still 70% more to pay?"

You did NOT start a contract for $1000.

There is no $1000.

The client put $300 into escrow.

The client is intending to pay you $300.

All of the work that you are doing right now?

That is worth $300.

Freelancers work based on what is FUNDED IN ESCROW.

If $300 is funded, then you do $300 worth of work.

Question: But what about $1000?

Answer: There is no $1000. What was that? A budget? Budgets don't matter. Promises don't matter. Messages don't matter. When you submit your work, you will get paid $300. If the client never pays you anything else, then the client is not breaking any Upwork rules. If you ask Upwork for help, they will look and say "The client already paid you $300. This matter is over."

[#3]

re: "The is a milestone but the client has put most of the work into the first milestone."

That's fine.

Most of the work is worth $300.

Maybe after the client gets that work, he doesn't even need the rest. He can end the contract at that point.

It doesn't sound like a wise move for the freelancer. But it is a smart move for the client.

[#4]

How do I change it?

Most of the work is work 3 times that

[#5]

re: "How do I change it? Most of the work is work 3 times that"

I don't know how to "change it."

You agreed to do "Task X" for $300.

Let's hope that this client is an honest person who isn't trying to manipulate the system.

What you were SUPPOSED to do was agree to do "Task X: Part 1 of 5" for $300.

Now you know that.

This is powerful information and it will help you for next time.

As far as I'm concerned, you have the option to simply stop working on this contract and refund any money that is in escrow to the client.

Or you can complete the task that was specifically described for this current $300 milestone. And hope that after you do a little more, the client will pay you the remaining $700 for the remaining work. He might. He might not. If he does NOT pay you the full amount, then you may decide to not work for the client again in the future. But you can't complain about it to Upwork.

[#6]

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Paul J wrote:

Most of the work is work 3 times that

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You shouldn't have accepted it like that in the first place. All you can do now is contact the client and ask for it to be set up the way it was originally discussed and how you (hopefully) defined the scope and the milestones and the payment for each milestone etc.

If you accepted the contract with $300 in escrow for all the stuff the client described, those are the contract terms you agreed to.

[#7]

I have just sent an update to the contract. 

most of my work before has been hourly and only small jobs were fixed,  so I was not sure how it worked. I no it's my fault.

Can I cancel the contract? and wait for the client to accept the one I sent or reject the job?

Plus will it affect my JSS score because no money has changed hands

[#8]

re: "Can I cancel the contract?"

It is always possible for a freelancer to end a contract.

You can unilaterally close the contract, and there is nothing that the client can do to stop you from doing so.

If you close the contract, then all money that is in escrow will return to the client's funding credit card. Automatically. Within 5 business days.

Will this harm JSS?
A zero-pay contract has no impact on JSS unless the client leaves negative feedback.

[#9]

If the client leaves negative feedback, it's my own fault. I only have myself to blame. I will have to use my top-rated perk for the first time to remove it. 

For others that read this. Don't make the same stupid mistake, I just have.

[#10]

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Paul J wrote:

I have just sent an update to the contract. 

most of my work before has been hourly and only small jobs were fixed,  so I was not sure how it worked. I no it's my fault.

Can I cancel the contract? and wait for the client to accept the one I sent or reject the job?

Plus will it affect my JSS score because no money has changed hands

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This doesn't have to end in disaster. You simply do the work covered under this amount, request payment, and ask the client when he is ready to add another milestone for the next step. The crucial thing is to never deliver more work that covered by a milestone, then you are SOL.