Understanding Upwork's Fixed Price Contracts

[cleverlyerica]

As a newbie I am really concerned to find the most straightforward and essential actions to be taken that represent good practice in managing my contracts with clients.

I am currently working for a client and we seem to be getting on well enough.  It is a fixed price contract but I simply do not understand how it is meant to work, what I need to do, whether I need to do anything or if I just keep writing and the money will eventually start rolling in  I keep submitting articles which have a US$ 5.00 in the box, but they are of varying length as the articles are of differing lengths each day. Add to this that the system does not show anything in terms of payment or money in the kitty.  I have read copious stuff online, watched videos and done Upworks newbie course.  None of this is much help as each case is individual and the system seems unnecessarily complicated (that may just be to my level of current understanding).   I have emailed help and the client and they seem to specialise in giving completely contradictory replies and information, though I am aware they both seem to be trying to be helpful but don't actually give it any time beyond replying to an email.  I feel frustrated and badly treated by Upwork's system that just seems sooooo complicated or maybe it is just poor communication.  Unfortunately it does not matter how many vidoes or information articles I read they do not address the inconsistencies and discrepancies....you can't have a conversation with an article or video and the conversations I keep trying to open up with the client or Help just lead to more articles, vidoes or instructions being sent my way that don't answer my query. How and when do I get paid on a fixed price contract. Do I have to do anything or does it happen automatically? How can I tell that I am doing everything I need to be doing to get paid?

When the client changes the rate of pay in their instruction do I have to take any action on that?

Quite simply is there anyone out there who is prepared to talk with me and put me on the straight and narrow with this.  I am doing alot of work but remain completely confused about how to interact with Upwork's system. 

This may well end up being a deal breaker for me as it seems far more complicated than is necessary and I am at a loss as to how to proceed. I feel that leaves freelancer's vulnerable to trying to manage contracts that are as individual as the number of people on earth, but without the support of underlying simple common sense principles that allow for diversity without compromising good practice and straightforward, transparent and protective working methods.

I would really appreciate some help from someone who can talk me through all aspects of this.  It seems utterly chaotic to me at present which is frustrating and disheartening as I am working hard. I also find it disempowering when Help tell me it is down to the client and I approach the client they tell me what to do and Help say, don't do that it means you won't be paid for another two weeks. - I like to take effective action and know that what I am doing is good practice and this is driving me crazy!!!!!!

[yitwail]

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@Erica C wrote:

I would really appreciate some help from someone who can talk me through all aspects of this.  It seems utterly chaotic to me at present which is frustrating and disheartening as I am working hard. I also find it disempowering when Help tell me it is down to the client and I approach the client they tell me what to do and Help say, don't do that it means you won't be paid for another two weeks. - I like to take effective action and know that what I am doing is good practice and this is driving me crazy!!!!!!

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 Erica, I do not work for Upwork, I'm just a freelancer like you, but I have successfully completed 100's of fixed price jobs, so I'm going to just state the basics and hope that will clarify things a bit. Fixed price contracts are based on milestones. As a freelancer, only work on a milestone when it's funded for the amount agreed to and it's clear what tasks are required to complete the milestone. Once you have completed the required tasks, you submit the work and request milestone approval. The client then has 14 days to approve the milestone or request revisions. Most clients will approve before the 14 days elapse, especially if the tasks were small. If the client asks you for work beyond what was specified for a milestone, ask the client to approve the current milestone and then create a new milestone for the new tasks.

[cleverlyerica]

Thanks for your input which sounds straightforward.

In terms of action by the sounds of it I need to check somewhere that the milestone has been funded when I am given work?  And it sounds also as if I am meant to verify approval of a milestone once the work is completed.  Does this request happen automatically as a result of me submitting work or do I have to take some other action?  I think describing what I need to do in terms of actions helps enormously.  Many thanks.

[kochubei_valeria]

Hi Erica,

I'm sorry you feel confused. In general, Upwork provides you with tools to communicate with the client, agree on and set up terms, submit your work and receive payments for your work. If you are using these tools as intended, you can benefit from Upwork Fixed-Price Protection. You need to directly communicate with the client regarding the volume of work, deadlines and how much you'll be paid for each milestone or article you submit. Unfortunately, Upwork can't negotiate those terms on your behalf.

This image describes the Fixed-price payment process:

It looks like you have 1 funded milestone on your fixed-price contract and you just submitted work for it. Now, the client has 14 days to review your work and either release payment or request changes. Please, make sure you don't re-submit, as it resets the clock.

Once this milestone is reviewed an approved, the client can set up and fund the next milestone for you to work on. Please, make sure you don't start working on a milestone before it's funded.

[versailles]

I'm seeing a possible flowchart war between Petra and Valeria.

Competition is good.

[kochubei_valeria]

Oh no, Rene, unlike Petra I didn't create the flowchart I posted. So I'm no competition

[cleverlyerica]

Thanks for your input Valeria and the flow chart.  It is helpful.  I have been working for the client since 5th June writing articles every day.  I would expect to see somewhere an accruement of an amount of money to reflect this as 14 day period has passed since submission of the first article.

I think your chart does now show how I know a milestone has been funded.  I just get a text through the system asking me to write an article for a certain number of words.  So I write the article and submit it.  That's all I keep doing.

The client has said they will pay me as I messaged them yesterday saying I am not in a position where I feel I can manage the contract as I simply don't understand the actions I am meant to be taking and it is unnecessarily stressful.   I have had a lot of input here and will work through it all and see if it makes more sense.

Thank you for your reply.

[wlyonsatl]

Hi, Erica.

Fixed price contract arrangements are pretty easy; moreso after you've done one.

STEP 1 You and your client agree on one or more milestones, each of which includes a) the deliverable(s) from you for which the client agrees to b) pay you a fixed amount of money. Don't begin work on any milestone unless Upwork's system confirms to you that the full amount of the milestone has been paid into escrow by the client. (Go to the project's page on Upwork to confirm the milestone is funded). 

STEP 2 Complete the work and use the Upwork system to submit the work to the client for approval, which means they are satisfied with the work and have instructed Upwork to release the escrowed amount to you. (The client has up to 14 days to do this. Once approval is made, actual payment to your bank account will typically occur in less than 5 business days. You will receive notice from Upwork when the approval has been received and when payment has been made to you.)

STEP 3  If the project has more than one milestone, you should begin work on the next milestone only after a) the client has released full payment on the previous milestone you submitted and b) has fully funded escrow on the next milestone.

For your own protection, especially with a client you have never worked with, do not begin work on any milestone that the client has not fully funded in the project's escrow. And never submit completed work to a client for a milestone that is not fully funded in escrow.

You should familiarize yourself with the My Jobs/Active contracts page on Upwork (click on the name of a contract to see details about each of your projects' budget, amounts in escrow, etc.), as well as Reports/Overview (where you can where various payments are in the payment process).

Hope this helps.

[cleverlyerica]

Thank you so much for your straightforward reply. 

I will follow what you have written and familiarise myself with the pages you mentioned.  

I think when everything is going smoothely I will be getting the notifications from the system you mention.  I have been submitting articles since the 5th June and not seen any confirmation yet of anything.  I would expect to see an accruement of an amount of money somewhere.

I texted the client yesterday direct and said that it is a deal breaker for me to not feel in a position to be able to manage this contract because of conflicting input from Help and him.  He said he would pay me straight away.

Fingers crossed. 🙂  Thanks for your input in any case.

[wlyonsatl]

If you click on My Jobs and then click on the name of a project you are currently working on, you will see all information related to your existing contract(s).

“Budget” is the total amount of the project fees you’ve agreed with the client.

“In Escrow” is the amount the client has funded for the current milestone

“Milestones Paid” is the amount the client has released from escrow and is in the pipeline to eventually be paid to you by Upwork

“Remaining” is the difference between “Budget” and “Milestones Paid”

When you have completed work on a milestone that has been funded, click on the “Submit Work / Request Payment” button and submit your work to the client, who then has 14 days to approve the release of money from escrow in the amount of that milestone.

[yitwail]

Erica, if you're still with us, you need to click a button that looks like the image below in order to receive payment on a fixed price job. Once you click the button, you will be paid in 14 days or less unless the client requests changes.