The Milestone Payment System was put in place to safeguard both the employer’s and freelancer’s interests. A project is off to a good start when the employer creates a Milestone Payment (or Milestone Payments). This provides an incentive for the freelancer to get the project underway and to perform diligently, knowing the employer is serious about making it work.
When a Milestone Payment is created, the amount will be put on hold. At this point, the employer is advised never to release the Milestone until all the tasks or products have been submitted. It is the employer's decision to withhold the Milestone Payment until full satisfaction. Only the employer can make the release.
Conversely, only the freelancer can cancel the Milestone Payment. In cases that require cancellation – an example is when the employer mistakenly creates a Milestone in excess of what was agreed upon – it would fall on the freelancer to do the right thing and cancel the Milestone Payment.
For Milestone Payments created before the freelancer accepts the project award, the employer still has the option to cancel the pending Milestone Payment. Once the award is accepted, the option to cancel the Milestone Payment will then be available only to the freelancer.
In such cases where the project doesn’t turn out well and the employer stakes his claim on his money, the Dispute Resolution System may be used.