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What to do when clients are not making payment if hired at fixed price?

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Ace Contributor
Mohammad Iqbal A Member Since: Mar 26, 2012
1 of 4

Hi All,

 

What to do when clients are not making payment if hired at fixed price while job was completed and submitted to the client? Kindly help.

 

Regards,

 

Mohammad Iqbal

Community Guru
Petra R Member Since: Aug 3, 2011
2 of 4

Was escrow funded and you submitted the work through Upwork?

Ace Contributor
Mohammad Iqbal A Member Since: Mar 26, 2012
3 of 4

Petra R Wrote

 

Was escrow funded and you submitted the work through Upwork?

 

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

 

Hi Petra R

 

The client agreed for $150 and he escrow funded just $50, and now he is not replying for the balance payment. Yes I submitted the work through Upwork. Now what to do?

Community Guru
Preston H Member Since: Nov 24, 2014
BEST ANSWER
4 of 4

Upwork doesn't guarantee payment for amounts of money agreed to but not actually funded as part of fixed-price contracts.

 

If you have a fixed-price contract that was funded for $50, then submit your work using the official submit work button.

 

Send one note via Upwork messaging reminding him that the agreement was for $150 total: "I have submitted the completed project. As we agreed, this was for $150.00 total. If you will go ahead and pay $100 in addition to releasing the already-funded $50, then this work will be paid for in full. Thank you."

 

Do not send any further notes, reminders, etc. Do not contact customer support.

 

Then one of these things will happen:

a) You will receive the payment as soon as the client releases payment. The client will release the full amount $50 and pay you an additional $100. Or he will not. With regards to the physical client-side controls at his disposal, this is largely up to his discretion.

 

b) The client will do nothing, and you will wait, and 14 days after your submission, you will receive the full amount funded in escrow: $50.00.

 

c) Although it is very unlikely, the client has the ability to dispute the release of the funded $50.00. He can specify a smaller amount, or nothing.

 

I know that you want $150, but if that is the amount you wanted, the appropriate thing for you to have done would have been to wait until the client funded the $150 at the beginning, and you should have verified that $150 was funded before you started work on the project.

 

Personally, I never dispute any amount a client decides to pay me. So I would accept whatever it is the client decides. But one of the reasons this works for me is that clients never pay less than I expect. This is because my clients are afraid that if they did so, I would not want to work for them again.

 

If you don't feel like you have that level of leverage with clients, then it makes it all the more important for you to have fixed-price projects fully funded before you start. That doesn't mean you get paid up front. It means that the full amount is paid by the client to Upwork before you begin the work. And if you do the work and submit it, the amount will be paid to you if the client does nothing. If you end up never doing the work and never submitting anything, then the client will receive that full amount of money back.

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