Dormant contracts

This article explains how fixed-price contracts with funds in escrow are marked as “dormant” after 90 days of inactivity. A series of notifications are sent to both parties before automatic closure, and if no action is taken, the funds are released—either to the freelancer or client—based on who responds within the given timeframe. - AI helped create this summary

When a fixed-price contract goes quiet for 90 days after the last milestone due date and there's still money in escrow, we’ll step in and start the process of closing the contract. This prevents money sitting in limbo forever.

Here's how that plays out, step-by-step:

1. On day 76: If the contract is inactive and still has escrow funds, we send a two-week heads-up to both the client and freelancer
2. On day 83: If no one takes action, we send a final one-week notice before closing the contract
3. On day 90: If still no action, the contract is officially marked dormant
4. Next, the client is asked to take action. If they don’t respond within seven days, we move to step five
5. We notify the freelancer and give them seven days to request release of escrow funds
6. After the freelancer requests release, the client has 14 days to either approve or dispute it
   • If the client says nothing? Funds go to the freelancer
   • If the client disputes? It can go into mediation

What if no one does anything?

If both sides stay silent after the dormant status, we release the funds to the client by default.

Pro tip: Want to avoid all this?

Just make sure there’s an active milestone with a deadline within 90 days. Even if the work is ongoing, updating the milestone or funding a new one resets the clock and keeps the contract out of dormant danger.