What is Upwork's policy on releasing the partial amount from the complete funded amount?

[#1]

Dear Members,

What if client funded the whole amount and release the partial amount. Is the remaining amount need to be funded by the client again?

Thanks,

Muhammad Tahir Moosa

[#2 · Accepted solution]

I'm assuming you're talking about releasing only a part of a milestone, and what happens when they create a new milestone after that.

In that case, the new milestone can be funded using what's leftover.

[#3]

Hi Michael,

Thank you for your response. 

Actually, I am talking about this scenario:

"If client funded $500 (total amount of the project) and after some time he wants to break that $500 in milestones. So if he releases $250 at some point so what about the remaining $250? Is client have to fund that remaining $250 again or is it remain in the funded amount" ?

[#4]

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Muhammad Tahir M wrote:

Hi Michael,

Thank you for your response. 

"If client funded $500 (total amount of the project) and after some time he wants to break that $500 in milestones. So if he releases $250 at some point so what about the remaining $250? Is client have to fund that remaining $250 again or is it remain in the funded amount" ?

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Client funds $ 500 for milestone 1.

Client releases $ 250 to the freelancer.

$ 250 go to the freelancer and $ 250 stay in Escrow.

Client sets up milestone 2 for $ 250, which is taken from the funds remaining in Escrow.

[#5]

Hi Petra, 

Can you please let me know if the client releases $250 from the funded $500 so why he/she have to setup/fund the remaining $250 again?

Thanks

[#6]

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Muhammad Tahir M wrote:

Can you please let me know if the client releases $250 from the funded $500 so why he/she have to setup/fund the remaining $250 again?

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She does not have to FUND it again, any future milestones are funded from the money that remains in Escrow. But unless the client wants to end the contract at that stage, something has to happen with those $ 250 that are still in Escrow. So the client sets up a new milestone, or several, that can be funded from the funds in Escrow.

If the contract is supposed to be ended at this stage, the client can end it after releasing the partial funds and request a return of the escrow funds (250 in that case)

[#7]

Okay perfect! I got it! 

So it means the client doesn't have to activate that remaining $250 again, correct? 

[#8]

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Muhammad Tahir M wrote:

Okay perfect! I got it! 

So it means the client doesn't have to activate that remaining $250 again, correct? 

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What is the actual aim here? To continue the contract or to end it?

If the contract is to continue:  The client does not have to PAY the $ 250 again, but DOES have to activate / fund / whatever any subsequent milestones, using the money that is in Escrow already from the partly released other milestone.

[#9]

The aim is to continue the project. 

But I am confused, why client have to activate the remaining $250 again? 

[#10]

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Muhammad Tahir M wrote:

The aim is to continue the project. 

But I am confused, why client have to activate the remaining $250 again? 

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Sigh.

You need an active milestone to submit against. When the client releases $ 250 out of $500 it completes the surrent milestone.

Without creating another milestone and funding it with the Escrow funds, there would not be a milestone - just $ 250 floating around in space.

The client has to approve the current milestone and release only half the money, then set up another milestone. You need an active milestone, essentially.

[#11]

Okay! I got it! 

Thank you so much Petra for your help! 🙂

I must say upwork community is really so great! 

[#12]

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Muhammad Tahir M wrote:

Hi Michael,

Thank you for your response. 

Actually, I am talking about this scenario:

"If client funded $500 (total amount of the project) and after some time he wants to break that $500 in milestones. So if he releases $250 at some point so what about the remaining $250? Is client have to fund that remaining $250 again or is it remain in the funded amount" ?

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There's lots of good info in the help section (under the question mark on your account page) to learn how things work. If a partial payment of a fully-funded milestone is released, the balance moves to the next milestone. This may help you out:

https://support.upwork.com/hc/en-us/articles/211068208-Fixed-Price-Contracts-How-it-works-and-Best-P...