dragan74
Member

Is funded milestone secured?

So I had a client and a milestone opened 3 months ago.. He had verified payment method and funded the entire sum.

 

He was absent, and we recently did a project. All was fine. But it turned out that the project was easier than thought, and we agreed the price to go 20% down.

 

IN that moment... the client managed to edit the milestone funds and lowered them 20%. I accepted and we closed the contract.

 

-----------------------------------------------

 

But the question is... we are not secured when milestone is funded? I thought that we are secured ? So the client can open a milestone and fund it... once we finish the job he can just cancel it and avoid paying?

 

Have I understood well?

ACCEPTED SOLUTION
kochubei_valeria
Community Manager
Community Manager

Hi Dragan,

 

The client can edit the amount when they release the funds and release a partial payment. However, when they close the contract you see a request to approve the refund of the remaining funds in Escrow back to the client. You have 7 days to either approve refund or dispute. If you do nothing, the funds are refunded to the client after 7 days.

~ Valeria
Upwork

View solution in original post

19 REPLIES 19
lysis10
Member

No, you have to approve a refund. If you don't, it goes into dispute.

But I didn't get any information or question of approval for this one?

You didn't? So he lowered the amount that he was paying you and you didn't accept anything that had to do with the outcome of the job and the refund?

 

The client only paid you part of the milestone. There was money left over. So, he didn't request a refund of the remainder? Are you sure? Did you check your email?

 

I've been through the refund process. You have to accept it or dispute it. Check your email.

Well, OP said:

 

"IN that moment... the client managed to edit the milestone funds and lowered them 20%. I accepted and we closed the contract."

 

He accepted.

Petra I accepted verbaly... and as I said it is not the issue with this contract... but the client did have the opportunity to edit milestone without my system approval.

Dragan,

When a client sets milestones beyond the scope of the original funded contract, the only way to reject them (after as much conversation as you think reasonable with the client) is to close the contract. Hope that helps,

Best,
Michael
kochubei_valeria
Community Manager
Community Manager

Hi Dragan,

 

The client can edit the amount when they release the funds and release a partial payment. However, when they close the contract you see a request to approve the refund of the remaining funds in Escrow back to the client. You have 7 days to either approve refund or dispute. If you do nothing, the funds are refunded to the client after 7 days.

~ Valeria
Upwork

Thanks Valeria...

 

This is what happened,

 

The initial contract was on 200 usd... within that contract we did many milestones and the initial contract value was used long time ago... So we were adding many more milestones one after another on the same contract...

 

looks like the milestone is not protected once your milestones exceed the value of the contract...

 

SO to make it clear... if you make a contract on 200... and then you do several milestones and spend the contract value... all new milestones can be edited and canceled as the initial contract value has been payed to you.

 

Is that correct?

 

PS Also looks like bonuses within the contract deduct that REMAINING sum. That remaining sum actually shows what is the sum you are secured on.


@Dragan B wrote:

 

SO to make it clear... if you make a contract on 200... and then you do several milestones and spend the contract value... all new milestones can be edited and canceled as the initial contract value has been payed to you.

 

Is that correct?


 

No, it is not correct, as Valeria mentioned the client can only get the money BACK out of Escrow if you agree OR it goes through Dispute.

 

In fact the original contract value is largely irrelevant.

 

All that counts is what is in Escrow as that is all that can be disputed.

Ok thanks

I have a similar question but slightly different. A client and i agreed on the sum of $100. He had approved the milestones up to $25 . He initially set the final draft to the milestone of $75 but when he wanted to fund it,  he paid only $10. I requested him to revert back the milestone to the remaining $75 for which we agreed on but his excuse was that he does not pay until he receives the product based on experience at Upwork. He told me to submit  the final work with the $10 milestone and he'll pay me.  I don't know how this will be possible or what he's driving at after all,  i can't get the funds until he approves. It's my first job here so i don't really know what to do in this case or if he's making any sense at all


@Yetunde Titilayo A wrote:

I have a similar question but slightly different. A client and i agreed on the sum of $100. He had approved the milestones up to $25 . He initially set the final draft to the milestone of $75 but when he wanted to fund it,  he paid only $10. I requested him to revert back the milestone to the remaining $75 for which we agreed on but his excuse was that he does not pay until he receives the product based on experience at Upwork. He told me to submit  the final work with the $10 milestone and he'll pay me.  I don't know how this will be possible or what he's driving at after all,  i can't get the funds until he approves. It's my first job here so i don't really know what to do in this case or if he's making any sense at all


 Essentially the client CAN pay that way, and I know several clients who do, but if everything goes to hell in a handbasket all you can dispute is the $ 10.

 

Personally I would not tolerate this kind of behaviour and simply tell the client that for $ 10 of funded milestone they can have  $ 10 worth of deliverable. (Professionally and politely, of course)

Thanks Petra but can i have this explanation in more simple terms? If i go ahead and submit the completed work with the $10 milestone. Is it possible to get the rest of the funds ($65)? How will i get it if possible and if i don't or the client refuses and closes the contract is there a way out? I want to know if the level of ridk I'm entering into with this new arrangement if i go ahead and submit the work

Upwork cannot help you get the remaining $65 your client promised you.

The payment protection only covers money in escrow. In your case that's $10.

 

 

Thanks Ela,  do you think this client may be trying to play smart? What do i do in case he refuses to pay the rest of the money. I spent a good lot of time on the project.  Does he have a right in this case to close the contract without paying the amount agreed upon

I don't know anything about your client. What does his hiring/work history look like?

 

If you submit all the work against the $10 milestone he can, indeed, take it and close the contract. That's all he owes you. And there's nothing you can do about it.

 

So I wouldn't do that if I were you.

 

 

Thanks,  i now understand better


@Yetunde Titilayo A wrote:

Thanks Ela,  do you think this client may be trying to play smart? What do i do in case he refuses to pay the rest of the money. I spent a good lot of time on the project.  Does he have a right in this case to close the contract without paying the amount agreed upon


I think he's trying to scam you.

 

I could be wrong, but the fact is that there is a process that allows him to request a refund from escrow if you don't do the job or he isn't satisfied. The whole point of escrow is to protect BOTH parties--you're protected by the fact that he has deposited the money and he's protected by the fact that you can't get it without his approval.

 

What he's trying to do is change from the system that protects both of you to one that protects only him...and, protects him from having to make full payment even if he loves and uses your work.  What do you think his intentions are?

Thanks Tiffany,  i don't think he's intentions are pure because initially at the onset of the contract he set all the milestones clearly. The final one was set at $75 .So far he's been approving the previous milestones without complain until the last when he became silent. I wrote him to find out why he won't fund the last one so i could submit. He requested for the completed work and altered the milestone to $10 claiming he doesn't want to pay until he's received the work in full as if there was a way i could collect the funds without delivering the work even if i wanted to. Its really painful for the time and energy expended on such a tedious task only to be rewarded this way. I'm keeping my fingers crossed and i don't think I'm compromising