1. A Dispute Is Submitted

Either the client or the freelancer can open a dispute directly from the relevant project when they believe there is a significant disagreement that cannot be resolved through normal communication.

Once a dispute is opened, the project is locked and work on the disputed project is paused while the case is reviewed. The funds associated with the disputed project remain on hold until a resolution is reached.

To ensure a fair assessment, both parties will be asked to provide relevant information and supporting documentation.

The client may be asked to provide:

• The original project requirements and agreed scope of work.

• Technical specifications, acceptance criteria, and expected deliverables.

• Relevant messages, meeting notes, and agreements.

• Details of missing, incomplete, or non-compliant deliverables.

The freelancer may be asked to provide:

• A summary of the work completed to date.

• Source code, developed modules, configuration files, or other relevant deliverables.

• Screenshots, demonstrations, test results, or other technical evidence.

• Relevant communications, progress reports, and records of completed tasks.

Both parties should submit accurate, relevant, and verifiable evidence within the timeframe communicated by FreelanceERP. Providing complete documentation helps our team assess the dispute more effectively.

After the required evidence has been submitted, FreelanceERP's technical team reviews the case.

The review may include:

• Comparing the delivered work with the agreed project scope and requirements.

• Assessing which features, tasks, or milestones have been completed.

• Reviewing the quality, functionality, and usability of the deliverables.

• Verifying submitted technical evidence and relevant project records.

• Estimating the proportion of the agreed work that has been satisfactorily completed.

Our assessment is based on the available evidence and the agreed requirements, rather than on either party's opinion alone. We may request additional information or clarification from either party when necessary.

Once the review is complete, FreelanceERP determines how the funds held for the disputed project should be allocated, based on the findings and applicable platform terms.

The outcome may involve:

• Payment to the freelancer: The portion of the funds corresponding to work assessed as satisfactorily completed is released to the freelancer.

• Return to the client: The portion corresponding to work that was not completed, as determined by the review, is released back to the client's FreelanceERP wallet.

Example: If a project is assessed as 50% complete, and the review determines that 50% of the agreed work has been satisfactorily delivered, 50% of the disputed project funds may be allocated to the freelancer, while the remaining 50% is returned to the client's wallet.

This is an illustrative example, not an automatic rule. The final allocation depends on the agreed scope, the evidence submitted, the nature and value of the completed work, and the applicable platform terms. A simple percentage of time spent does not necessarily equal the percentage of work completed.

Once the dispute has been reviewed and the fund allocation has been processed, the disputed project is closed. The original project cannot be reopened to continue the remaining work.

If the client wishes to continue the project, they must create a new project on FreelanceERP. They may invite the same freelancer to continue the work or choose a different freelancer.

This approach provides a clear endpoint for the dispute and allows any remaining work to be defined, agreed upon, and funded under a new project.

How to Reduce the Risk of Disputes

The best way to handle disputes is to prevent misunderstandings before they happen. We strongly recommend the following practices for both clients and freelancers.

Define the Scope Clearly

Before work begins, agree on the project's objectives, deliverables, technical requirements, acceptance criteria, responsibilities, and deadlines. Make sure both parties understand what is included in the project and what falls outside its scope.

Keep Project Documentation

Record important decisions, scope changes, approvals, and discussions. Keep copies of relevant technical documentation, deliverables, and progress reports. Written records help establish what was agreed upon and what was delivered.

Use Project Management Tools

Use the project management tools and workspace provided through FreelanceERP, accessible to both the client and the freelancer. Record tasks, update progress, attach files, and document approvals and changes there whenever possible.

Keeping project activity in one shared workspace makes it easier for both parties to follow progress and provides useful records if a dispute arises.

Schedule Regular Meetings

For complex projects, schedule regular meetings to review progress, clarify requirements, discuss technical challenges, and confirm priorities. Document key decisions and action items after each meeting.

Use Milestones for Larger Projects

For large or complex projects, we strongly recommend dividing the work into smaller, clearly defined milestones.

Each milestone should specify its deliverables, acceptance criteria, timeline, and agreed amount. Funding and reviewing work in stages helps identify issues earlier and limits the amount of work and money involved in any single disagreement.

Communicate Changes in Writing

If the requirements, timeline, or deliverables change, make sure both parties agree to the changes in writing before proceeding. Unrecorded changes can create misunderstandings about what the freelancer was expected to deliver.