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srlsystems
Community Member

interim payments

I set up a contract for a fixed fee, payment due on delivery (e.g. $250).  The freelancer has asked for an interim payment (e.g. $100) which I am happy to do.  However how do I do this without increasing the original budget? When I create a milestone for the $100  the budget goes up to $350.  I don't want to have to pay the fixed fee and the interim payment so how do I pay $100 now and only $150 on final delivery?

thanks

ACCEPTED SOLUTION
petra_r
Community Member


@matthew c wrote:

I I don't want to have to pay the fixed fee and the interim payment so how do I pay $100 now and only $150 on final delivery?

thanks


 Get the freelancer to go to the contract and click on "Submit work and release payment" and then EDIT the amount to $ 100.

 

You'll get a notification that your freelancer has done so, and can approve the request.

Afterwards set up the second milestone, which will be funded from the amount still in Escrow.

 

ONLY do this if you have $ 100 worth of work, completed correctly and to your satisfaction. Do not release any partial funds until you know the work that is being paid is actually done and right. Once you release payment it's gone...

 

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2 REPLIES 2
petra_r
Community Member


@matthew c wrote:

I I don't want to have to pay the fixed fee and the interim payment so how do I pay $100 now and only $150 on final delivery?

thanks


 Get the freelancer to go to the contract and click on "Submit work and release payment" and then EDIT the amount to $ 100.

 

You'll get a notification that your freelancer has done so, and can approve the request.

Afterwards set up the second milestone, which will be funded from the amount still in Escrow.

 

ONLY do this if you have $ 100 worth of work, completed correctly and to your satisfaction. Do not release any partial funds until you know the work that is being paid is actually done and right. Once you release payment it's gone...

 

kat303
Community Member


@matthew c wrote:

I set up a contract for a fixed fee, payment due on delivery (e.g. $250).  The freelancer has asked for an interim payment (e.g. $100) which I am happy to do.  However how do I do this without increasing the original budget? When I create a milestone for the $100  the budget goes up to $350.  I don't want to have to pay the fixed fee and the interim payment so how do I pay $100 now and only $150 on final delivery?

thanks


 What is this freelancers reason for asking for that interim payment of $100? I can understand if the freelancer needs to buy something specific for this job and you understand that, that has to be done, or if the freelancer needs to hire and pay actors, or even if this job is going to take a long time before final payment will be released. And even in that case, milestones can be set up so that weekly, the freelancer can get payment ---- as long as they produce something BEFORE you release that payment.

 

You may be happy to do that, but once you do, and the freelancer doesn't produce any work as weeks go by and/or once you release that payment, the freelancer disappears. I'm not saying that will happen, but remember, this is a stranger you met on the internet. What trust have each of you built up? And how can you insure that the freelancer will keep their promise.

 

When a client deposits funds into escrow that shows the freelancer that the client has "good faith." That a client has the money and does intend to pay a freelancer. Clients can also set up several milestones with the scope of work required for that milestone and the percentage of total payment for that milestone. Once work is delivered and the client has time to look it over, test it etc, then and only then should the client release the funds set aside for that milestone. You can most certainly fund $100 as the first milestone with the scope of work required before you release those funds.  You can also set up additional milestones for $100 and another one for $50 as the final payment (or however you want to divide the remaining funds and what work would be required.

 

IMO you should not prepay for work you have not received yet.

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