Why do Enterprise contracts close automatically?

[gilbert-phyllis]

Last summer I was vexed when a contract closed automatically and I wound up with no fb. At the time I thought the hiring manager on the client side had closed it but I now understand that when a contract with an Enterprise client reaches its end date, it automatically closes unless the client has requested that the date be extended. I'm currently working on a contract with a different Enterprise client (and negotiating additional work with the client after this is completed) and I'd like to understand why these contracts work differently from contracts with other clients which can sit idle indefinitely as long as no funds are left in escrow.

I actually received an email from UW last night reminding me this contract is set to close in 10 days and inviting me to close it now. Why on earth would I do that when the client and I are still working on revisions? I cleared a number of hurdles to get some fancy badges that help Enterprise clients notice me, and I jumped through quite a few hoops to get onboarded. Why does UW then meddle in the contract in a way that does not happen on other contracts? I'm a firm believer in understanding how the platform works and finding ways to use it profitably, whether it makes sense or not. I find it helps to know the rationale for something like this.

[feed_my_eyes]

I don't understand this either. I work with a really busy Enterprise client who frequently gets sidetracked before a project is finished, so Upwork keeps closing it and we have to start a new one; or, if he notices in time, he has to write to Upwork and request an extension to the deadline, then Upwork writes to me for my agreement (when I'm perfectly capable of just saying yes or no to the client myself).

On normal contracts, if a client wants to extend the deadline, they can just do it themselves - why do Enterprise clients have to ask for Upwork's permission? My clients have also commented that they find this process to be annoying, so I don't understand who it's designed to benefit? 

[kinector]

Yeah I remember the reminders and all that. It felt unnecessary.

I guess the rationale has something to do with big companies fearing only one thing: Lawsuits. Any discrepancies between freelancer sending them project results and the dates when the person is under the contract would look risky to the legal department. So there are many checks to avoid that.

Smaller companies don't care about these things. They focus on getting the business done. Results received and paid for, then all OK. If the contract-technical parts went 100% or just close enough, who cares if everyone is happy. Nobody would sue anyone anyway.

[gilbert-phyllis]

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Mikko R wrote:
Yeah I remember the reminders and all that. It felt unnecessary.

I guess the rationale has something to do with big companies fearing only one thing: Lawsuits. Any discrepancies between freelancer sending them project results and the dates when the person is under the contract would look risky to the legal department. So there are many checks to avoid that.

Smaller companies don't care about these things. They focus on getting the business done. Results received and paid for, then all OK. If the contract-technical parts went 100% or just close enough, who cares if everyone is happy. Nobody would sue anyone anyway.

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Thanks for taking the time. I'm actually hoping to hear from one of the senior moderators who can shed light on UW's rationale for this set-up.

[kochubei_valeria · Accepted solution]

Hi Phyllis,

Clients on Enterprise Membership have access to configurable contracting features that allow them to align their Upwork contracts with their internal policies and make sure they are compliant. That's why contracts with Enterprise clients work differently in some way and auto-close unless they are extended by the client.