Dormant contracts

If a fixed-price contract remains inactive for 90 days after the last milestone due date and funds are still being held, Upwork initiates closure procedures to prevent indefinite limbo. Notices are sent on days 76 and 83. If no action is taken, the contract is marked dormant on day 90. Adding or modifying milestones resets the 90-day countdown and prevents auto-closure.

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

1. On day 76: If the contract is inactive and still has pending project 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 the 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?

If you're not ready to close the contract yet, adding or adjusting milestones keeps things open because:
 

• Contracts with future-dated milestones won’t close automatically
• Adding a new milestone—no matter the due date—extends the contract by 90 days
• Updating an existing milestone also resets the 90-day clock