What Milestones should I specify within the job terms?
posted this on May 04, 2009 04:03 pm
Milestones are key dates in the job schedule in which work deliverables can be reviewed, approved, and paid for. Jobs may be set up with a single milestone (the final result) or with as many interim steps along the way as needed. Milestones can be used to link payments with actual deliverables, or can be used simply as pre-scheduled check points to help with progress and communication.
What are some examples of project Milestones?
Examples of milestones:
Example: Logo design project
Milestone 1: Start fee deposit
Milestone 2: 6 concepts
10 Nov 2011
Milestone 3: 1st Revision of chosen concept
15 Nov 2011
Milestone 4: 2nd Revision of chosen concept
20 Nov 2011
Final: Delivery of final print-ready files
24 Nov 2011
Example: Microsoft Access project
Milestone 1: Initial schema design
10 Nov 2011
Milestone 2: Implementation
15 Nov 2011
Milestone 3: QA
24 Nov 2011
Final: Release/Final Product
30 Nov 2011
What if I need to increase or decrease milestone amounts after the job is active?
If the milestone funds have not been released, the milestone can be reduced or deleted, dates changed, and name and description edited. Both parties should communicate in the Workroom to negotiate and document any modification to the Terms.
How do I fund the first Milestone?
Congratulations on hiring a freelancer for your job and finalizing business terms. It’s now time to fund the first project milestone so that your freelancer can start work.
How to Fund the First Milestone
To fund a job milestone, log in to your Elance account and follow the steps below:
1. Click the Manage tab in the top navigation bar and then select Payments from the drop down list 2. Next, click on the Make Payment link located on the second row of the navigation bar. 3. Select the radio button to the left of the job name you want to fund and click Next. 4. On the Payments page, click Fund for your particular milestone. Fund is located in the 'Escrow Funding and Release' section of the page. 5. Select your payment method and check the box. 6. Select the Submit Funds button.
The freelancer will receive a notification when you fund job milestones. Remember, the freelancer is not obligated to begin work until at least one job milestone has been funded by the client.
What is 'Prefunding' of Milestones?
Once you have selected a freelancer and awarded your job, you will be prompted to review and update Terms and Milestones. Before sending the Terms to the freelancer, you have the option of funding the escrow account. This is referred to as "prefunding" since you are depositing funds into escrow before the freelancer accepts the Terms. The advantage to prefunding the escrow account is that it will help the job get underway faster if the freelancer has no changes to the Terms or milestones. Once they accept the Terms, they can begin working on the job immediately. If the freelancer does not accept the Terms or makes any changes, the funds in escrow are automatically refunded to the payment source.
Prefunding also applies to Terms changes. If you make a change to the Terms such as adding a milestone, you can immediately fund the new milestone prior to the freelancer accepting the change. As above, if the freelancer declines the change, the funds are automatically refunded to the original payment source.
Prefunding is completely optional. If you chose not to prefund the milestone, you can send the Terms to your freelancer and fund the milestone once the Terms agreement is finalized. You will be notified when the freelancer accepts or declines the Terms.