Mechanics of mutually agreed partial refund

Scanned previous threads and didn't find this addressed anywhere, so here's my special question...

 

I've bid on a qualitative research project which would be set up as a fixed-price job. The project will involve in-depth interviews for which each respondent will be paid an incentive for participating. I plan to include the amount to cover the incentives in the first milestone payment (along with the portion of my fee appropriate to cover activity associated with that milestone). Remaining milestone payments will cover the remainder of my fee in appropriate increments.

 

By the time the project is completed, it may turn out that we do slightly fewer interviews than originally planned, e.g. 18 or 19, rather than 20. This will be by mutual consent and I will need to refund to the client whatever amount covers unused incentives.

 

My question: what is the most efficient and convenient way to do that? Out in the world, I would simply deduct the amount from the final invoice. On Upwork, would it be better to adjust the last milestone or do a refund transaction? Or does it matter?

ACCEPTED SOLUTION
tlsanders
Member

What I've done in similar circumstances is just change the amount when requesting payment on the last milestone. The client can then release the appropriate amount and, at the same time, request a refund of the balance.

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tlsanders
Member

What I've done in similar circumstances is just change the amount when requesting payment on the last milestone. The client can then release the appropriate amount and, at the same time, request a refund of the balance.

I knew somebody must have invented this wheel already. Thanks, Tiffany! 

Wanted to have the specifics in my pocket, for when the client asks, How are we gonna...?