Upwork Contract Dispute - Client ended contract with funds in Escow

[parassanghani]

I am Upwork freelancer using Upwork platform since last 7 years and also Top rated. 
Recently, I am facing very bad experience with one client and fix cost job and probably 1st time on Upwork platform since last 7 years. Below is my situation:

I had fixed cost contract on Upwork divided into 6 Milestones.
Milestone 1 - $600 and Milestone 2  - $600 was paid by client after many request and revision. 
Client asked to work on Milestone 3  - $800 without funding/activating milestone and so I need to seek help of Upwork for Milestone 3 activation by client, client activated Milestone 3 and funded for same after 70% work was done. Client funded and activated Milestone 3 on due date after checking that 70% was done. I have every messages on Upwork & few on Skype.

I completed Milestone 3 development and sent for approving Milestone 3 and then story begins - Client keep on asking me to do changes that are not in scope and keep on denying for Milestone 3 payment by asking for revisions. I asked client that I will do small changes but not all points that are out of scope.

To this client ended the Contract with Milestone 3 payment in Upwork Escrow with bad feedback(3 star and comment) and asked me for Refund of Milestone 3 payment.

I refuse to refund and file dispute for Milestone 3. Upwork mediation team asked me to do settlement by refunding amount in Milestone 3 to client and keep Milestone 1 & 2 paid & approved by client with me. Otherwise, we need to go 3rd party arbitation where client can ask for full contract payment of $2000
I worked hard for almost 3 weeks and now I need to either forget $800 and Upwork mediation team is telling me that client will have dispute for all amount in contract $2000($800 in Escrow)

Milestone 1 was project confirmation amount paid by client and I spent many hours prior to project confirmation to help, queries, questions and environment setup at my end. Client did not have any environment so I have given all access to my own environment of SharePoint and paid from my pocket. After everything was setup, he paid for Milestone 1 and approved on .

Milestone 2 was wireframe stage which is also hosted on my environent and client is having every righs on the same. 

Milestone 3 was development and as client did not have any hosting plan to host the same and access is granted to client for whole development environment.  

What should I do? Should I go ahead with arbitration as client is now demanding $2000(Milestone 1 - $600 and Milestone 2- $600 already approved and paid to me)   and Milestone 3(In Escrow - not refunded by me). Contract was ended by client although I was ready to help for small changes and also every communication is on Upwork.  I am also suprised that dispute was raised by me for Milestone 3 payment but Upwokr mediation team is telling if we move to Arbitration then it will for full contract amount of $2000.

Please help and suggest.

[petra_r]

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Paras S wrote:

What should I do? Should I go ahead with arbitration 

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Yes, if you are confident you have done work as agreed.

And yes, the client can diispute the entire contract, not just the last milestone.

[parassanghani]

Hi Petra,
Thanks for response. I have every communication on Upwork and just wanted to confirm that client have full access on our environment. The final requirement will be as per Upwork contract and offer correct? Attached is screenshot of offer with details in bullet points. Also, I have delivered far way more than the requirement document. Client is still having full access to our environment because case is in dispute.
Also, what proofs will be needed and considered. He activated Milestone 3 and funded same after reviewed all the work on our enviornment. 

**Edited for Community Guidelines**

[petra_r]

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Paras S wrote:

Also, what proofs will be needed and considered.

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The arbitrator will tell you all that. There is also a (small) chance that the client will decide not to go ahead with arbitration.

You did deliver and handed over the entire work to the client, right? (Meaning that the client physically has it, it's not just on your environment, correct?) 

[parassanghani]

Client ended the contract before Milestone 3 payment itself and every development was on O35 environment along with all files.

Client is having full access to our environment where they can get all the files from my environment. I have given full url along with complete access to our environment.

Milestone 6 was production deployment where i need to deploy on their environment.
I handed over work done on O365 platform and client had full access to environment. Client didn't want to even purchase O365 subscription and that also was purchased by me.

[petra_r]

So the client does physically *HAVE* the work? 

[parassanghani]

Yes, client have full access of all files on O365 cloud. Below is sample link:
**Edited for Community Guidelines**
They have credentials and it was shared with them since starting of the project phase. Once, they login they have full access.

They were daily updates and many revisions were done by me upto level then I deny to do out of scope changes. Also, client was haviing another client whom they report and show daily updates/progress in the project. Based on their another client, they ask me to do changes out of scope.

[petra_r]

Just go ahead with arbitration, especially when the client is trying to get all the money back...

[parassanghani]

O365 link is also live development link and it has all the development files and client has full access to same since begining.

[parassanghani]

Hi Petra,
Attached is confirmation from client in the begining of the project related to environment. It will be great proof in arbitration. Credentials were shared with client and they were able to fully access everything.

**Edited for community guidelines**

[lysis10]

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Paras S wrote:

Hi Petra,
Attached is confirmation from client in the begining of the project related to environment. It will be great proof in arbitration. Credentials were shared with client and they were able to fully access everything.

**Edited for community guidelines**

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Upwork isn't involved in arbitration, so just keep it all for the arbiter.