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cedreewheeler
Community Member

Milestone on a fixed price contract

Hi guys! Kinda new here on upwork and got hired for a project with a budget of 250$. The project is to complete 12vids including some research before the edit. The offer says first milestone funded (Video Project I = 12 videos + Research      amount:100$) meaning there is already 100$ in escrow.

 

My question is do i get the remaining balance from the client's budget after completing everything? The first milestone is basically the final output for the offer. So i dont understand why it should be cut to milestones.

Should i put another milestone that says Completion = amount150$ (which is the remaining balance to be earned)

ACCEPTED SOLUTION

ooof wow those messages. Yep, like I said this already is looking like no bueno.

 

No need to ask him to fund another milestone. He can't anyway. The time to ask for full escrow is before you accept. He expects you to do it all too on half I reckon from those message.

 

That client is a ray of friggin sunshine.

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35 REPLIES 35
mtngigi
Community Member


Cedree W wrote:

Hi guys! Kinda new here on upwork and got hired for a project with a budget of 250$. The project is to complete 12vids including some research before the edit. The offer says first milestone funded (Video Project I = 12 videos + Research      amount:100$) meaning there is already 100$ in escrow.

 

My question is do i get the remaining balance from the client's budget after completing everything? The first milestone is basically the final output for the offer. So i dont understand why it should be cut to milestones.

Should i put another milestone that says Completion = amount150$ (which is the remaining balance to be earned)


For a budget that low, it's really best to only use one milestone, and do not start work until the milestone is fully-funded. Right now, all your client is responsible for is what is in escrow ... $100.

 

Did you set up milestones when you bid on the job?

no i did not set milestones when i made the bid. he added that himself. and since i saw that it was 250$ was written on the contract I accepted the offer, thinking the remaining amount will be awarded to me upon completion of the contract. Here is what the client has to say:


Cedree W wrote:

no i did not set milestones when i made the bid. he added that himself. and since i saw that it was 250$ was written on the contract I accepted the offer, thinking the remaining amount will be awarded to me upon completion of the contract. Here is what the client has to say:


And this is why experienced freelancers (and mods) suggest that you read all the many help articles before you start working. Had you done that, this situation would not be occurring. Even if you don't want to read everything, at the very least, the basics of milestones and getting paid should be on your list of things to learn and understand before taking any more jobs.

 

The client is rightfully upset. You might want to consider a polite explanation as to why you made your request, and maybe they'll understand.

 

ETA: There's nothing wrong with asking for one fully-funded milestone, but since you didn't because you thought wrong about how milestones work, I can understand the client's point of view. You agreed to their terms.

 

Full escrow does not have to be fully funded - milestones are between you and your clients and how you set your bids and jobs up from the start.

I apologized and explained to him that from what i read here, the full escrow must be funded. And the first milestone is kind of the the general output of the job but with only partial amount funded. And then he said:
We have already awarded you the job so DO NOT ask for any request. We always pay when the job is done. It's almost like an insult.


Cedree W wrote:
I apologized and explained to him that from what i read here, the full escrow must be funded. And the first milestone is kind of the the general output of the job but with only partial amount funded. And then he said:
We have already awarded you the job so DO NOT ask for any request. We always pay when the job is done. It's almost like an insult.

No one told you full escrow must be funded ... it doesn't.

 

What I suggested is that it doesn't make sense for jobs with low budgets to have any more than one milestone. If this client has spent a lot of money and worked with other freelancers, they know perfectly well how things work.

on a client's pov, are they require to set a certain milestone for creating a contract? or can they fund full without the milestone? it obviously wrong that we set a milestone for the full output with partial amount. and it sucks that i accepted it without being fully informed

sachan17
Community Member

Hi Cedree,
As far as I know, you should not start working until the client puts a complete amount in the escrow. It is highly possible that the client later denies paying the complete amount and in that case, Upwork won't be able to protect you. 
Make it clear to the client that, you won't start working until that or change first milestone to whatever you feel is worth $100 instead of the final output.

Thank you for all your replies. This is what the client said after sending a request for the remaining amount.

gilbert-phyllis
Community Member

Follow the advice you received from Virginia and Prateek. Never do more work than can be paid for with funds in escrow. The client needs to either place the remaining funds in escrow for the milestone, or re-write the milestone terms to reflect only $100 worth of work (about 8 videos?).

Good luck!

Remember that Upwork will never look at the "budget."

 

Upwork will only look at the amount funded in escrow.

 

So if there was a problem, and you complained: I was not paid in full...

 

Upwork would ask: "How much was in escrow?"

 

Freelancer: $100

 

Upwork: "How much were you paid?"

 

Freelancer: $100

 

Upwork: "You have been paid on full. Case closed."

lysis10
Community Member

This is already looking like no bueno.

thats what im thinking too. the client was definitely pissed. do i just cancel the contract? im afraid he would leave bad feedback and/or it would affect my JSS ๐Ÿ˜ž

kind of wrong move on my part that i accepted the offer because i thought since the full budget is on the contract it will automatically be paid on my balance once the contract ended. 

re: "the client was definitely pissed."

 

Why?

this what he said

ooof wow those messages. Yep, like I said this already is looking like no bueno.

 

No need to ask him to fund another milestone. He can't anyway. The time to ask for full escrow is before you accept. He expects you to do it all too on half I reckon from those message.

 

That client is a ray of friggin sunshine.

Yeah i thought so too! And i dont want to continue. Will he give me public feedback when i cancel the contract?


Cedree W wrote:
Yeah i thought so too! And i dont want to continue. Will he give me public feedback when i cancel the contract?

Has he really spent $200k in a year? You can also look at his feedback to see if he pays out and also to see if he pays what he says he does.

 

idk, dude, this is your call but there is a chance you're not getting paid. But we can't see the client profile so can't make a call on something like that. After you click accept, the contract affects your JSS.

Yes he reallly did 200k+ total spent and member since 2008. He prebably took my request the wrong way and then lashed out on me


Cedree W wrote:
Yes he reallly did 200k+ total spent and member since 2008. He prebably took my request the wrong way and then lashed out on me

I'm sure there are some **Edited for Community Guidelines** out there, but usually a client that has spent $200k in a year doesn't act like that. I have doubts that amount was in a year. $200k in 12 years though ain't really that much. You would be able to identify if he's lying by looking at his history. 

 

But anyway, I can't tell you what I would do because I have the perk and can **Edited for Community Guidelines** with these people without consequences. You've got your JSS to think of, but just know that I'm sure he's escrowing half because if he doesn't like your work, he will try to get out of paying.

thank you! i checked my jss and apparently its still not available since i only have done few. what about public feedback? will he have an optio to write me one? im really having bad vibes for this one, and i dont want to continue having this kind of moment with the client. ๐Ÿ˜ž

re: "$200k in 12 years though ain't really that much"

 

$200k in 12 years, or in a single year.... Either way, that is the mark of a serious client and not a scammer.

 

And that is more money than most freelancers have spent on Upwork, as well as more money than most clients have spent on Upwork.

 

$16,666 per year is not a particularly large amount for a successful U.S. business.

So I agree with Jennifer's sentiment that if this was over a period of 10 years... This doesn't mean the client represents considerable wealth or a company that is spending tons of money on Upwork.

 

But it IS more money than most Upwork users have spent.


Preston H wrote:

re: "$200k in 12 years though ain't really that much"

 

$200k in 12 years, or in a single year.... Either way, that is the mark of a serious client and not a scammer.

 

And that is more money than most freelancers have spent on Upwork, as well as more money than most clients have spent on Upwork.

 

$16,666 per year is not a particularly large amount for a successful U.S. business.

So I agree with Jennifer's sentiment that if this was over a period of 10 years... This doesn't mean the client represents considerable wealth or a company that is spending tons of money on Upwork.

 

But it IS more money than most Upwork users have spent.


I never said the client was a scammer, but it's entirely possible he plans to not pay this guy if he doesn't like the work. That's the whole reason for only escrowing half.

 

From his messages, he expects him to do all the work too and then trust that he'll pay. What happens if tomorrow the client gets hit by a bus? The freelancer needs to protect his own interest and get it fully funded for the work he'll be doing.

 

Personally, I'd do half if he spoke to me like that and then tell him to pay me. He'd argue, and then I'd take it to mediation just to be a

**Edited for Community Guidelines**

about it.

re: "The freelancer needs to protect his own interest and get it fully funded for the work he'll be doing."

 

The client may be out of line.

 

But it looks like you and I both agree that the freelancer set up the contract improperly.


Preston H wrote:

re: "The freelancer needs to protect his own interest and get it fully funded for the work he'll be doing."

 

The client may be out of line.

 

But it looks like you and I both agree that the freelancer set up the contract improperly.


Yes, normally I'd say it's just a possible client mistake but after the client's comment, the dude is just a **Edited for Community Guidelines**.

 

I wish Upwork would list $0 contracts on a client's history so freelancers can see serial cancelers, but that's a pipe dream.

Cedree:


I read the transcripts of your conversation with the client.

 

The client points out that he has spent over $200,000 on Upwork. So he is not some kind of scammer trying to get free work. And you know he has already funded $100 for your task.

 

He simply expects you to do the task that you agreed to.

 

From the transcripts I read, it seems like you are asking for more money for work you already agreed to do, for work that is already funded in escrow.

 

There may have been a misunderstanding on the freelancer's part about how fixed-price contracts work... Or there may have been a misunderstanding between what the freelancer was asking for, versus what the client thought he was asking for.

 

My advice to Cedree - for future contracts - would be to clearly specify what a fixed-price milestone entails, what the price is, what the deliverable will be.

 

And you may want to do what I do: For me, there is no such thing as a "budget." There is a fixed-price milestone task, and a payment for that task. That's all. A task is funded. I do the work for that task, and I get paid for that task. Even if I specify a series of sequential tasks with milestone costs associated with them, I never care if a client hires me to do subsequent tasks. If I do one task, that is fine. If I do 10 tasks, that is fine. The payment and costs for subsequent tasks are not related to earlier tasks.

Thank you!

The task for the milestone is the general output for the whole project but ony funded partially. It says 

 
 
Milestone 1: Video Project I = 12 videos + Research
 
Amount in escrow: $100.00

i am wrong for accepting the offer without asking or clarifying him why only partial. Accepted the offer and requested for him to change it. Well he took it the wrong way. 

 

Client replied after i ended the contract. Keeps blabbing about the 200k he spent and says will pay in full after everhting is done. 

*the project in the first place is to rip footages form youtube and edit it in a way that it will not be pinged for copyright infringement so theres that. I was having bad vibes about this the moment he made the offer. I shouldve followed my gut that time*


Cedree W wrote:

The task for the milestone is the general output for the whole project but ony funded partially. i am wrong for accepting the offer without asking or clarifying him why only partial. Accepted the offer and requested for him to change it. Well he took it the wrong way. 

 

Client replied after i ended the contract. Keeps blabbing about the 200k he spent and says will pay in full after everhting is done. 

*the project in the first place is to rip footages form youtube and edit it in a way that it will not be pinged for copyright infringement so theres that. I was having bad vibes about this the moment he made the offer. I shouldve followed my gut that time*


lol it just gets worse and worse. Of course mr "I spent $200k" would be ripping copyrighted videos. I'm going with my original thought that this was $200k in 12 years not 1 year. What a loser.

i already said bye and goodluck finding someone to complete the work, yet hes not yet done. he said:

**Edited for Community Guidelines**

 

giphy.gif


Cedree W wrote:

i already said bye and goodluck finding someone to complete the work, yet hes not yet done. he said:

**Edited for Community Guidelines**

 

giphy.gif


lol I take it back. This guy is a scammer. haha  $200k "spent" $150k in refunds lol

Hahahhahaha

Hahahaha
cedreewheeler
Community Member

Thank you guys for all your help! Ended the contract and explained the reason politely. Gave him the links that he asked during the time being, so at least he wouldnt get the idea time was wasted. Anyway it was my kind of my fault not clarifying the contract offered.

I will definitely follow you advices and will definitely learn from this!

 

Thank you and god bless you all!

 

 

Hi Cedree, 


I hope this issue with your client gets resolved soon. 

I had to edit your posts as we do not allow chat transcripts to be appended to posts, or shared here in the Community as it is in violation of the Upwork Community Guidelines. In the future, please be mindful of the guidelines when posting in the Community. 


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