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What Milestones should I specify within the Job Terms?

Milestones are important points in the life of the project.  Elance's Terms feature allows you to create separate milestones to specify what will be delivered, when, and how much the service provider will be paid. You can specify one or as many milestones as needed. You can either link a payment with the delivery of the milestone, or setup milestones without payments for maximum flexibility. 

Examples of milestones:

Example: Logo design project Delivery Date Amount
Milestone 1: Start fee deposit (today's date) $75
Milestone 2: 6 concepts 10 Nov 2008 $75
Milestone 3: 1st Revision of chosen concept 15 Nov 2008 $75
Milestone 4: 2nd Revision of chosen concept 20 Nov 2008 $75
Final: Delivery of final print-ready files 24 Nov 2008 $100
Total: $400

 

Example: Microsoft Access project Delivery Date Amount
Milestone 1: Initial schema design 10 Nov 2008 $200
Milestone 2: Implementation                              15 Nov 2008 $200
Milestone 3: QA 24 Nov 2008 $200
Final: Release/Final Product 30 Nov 2008 $200
Total: $800

 

What if I need to increase or decrease milestone amounts after the job is active?

If payments have not yet been made for a milestone, any change can be made on the milestone (Description, Date, Notes, Amounts).  However, once payments have been made, there are some considerations on what can be changed for that milestone.   

These are various actions that are allowed per milestone, depending on whether there have been any payment activity for that milestone:

How Milestones can be changed
Scenarios: Want to Increase Milestone Amount? Want to Decrease Milestone Amount? Want to change Milestone Description or Date? Want to Delete a Milestone?

Standard Job:
Milestone has been paid

Allowed Can decrease milestone amount as long as it is not below the already paid amount. Allowed Once the milestone has been paid, it cannot be deleted.
Escrow Job:
Milestone is funded only
Not Allowed - Add a new milestone for the increased amount.

Allowed.

* The amount difference is automatically refunded to the buyer once both parties approve.

Allowed

One cannot delete the milestone, but can reduce the amount down to zero.

* The amount difference is automatically refunded to the buyer once both parties approve.

Escrow Job:
Milestone is funded and released
No changes are allowed after a Escrow payment release. No changes are allowed after a Escrow payment release. No changes are allowed after a Escrow payment release. No changes are allowed after a Escrow payment release.

NOTE: Both parties should use the Private Message Board (PMB) to negotiate and document any modification to the Terms.