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Payments & escrow

Milestone payment protection

Milestone payment protection breaks a project into stages, each with its own deliverable and payment released only on approval. Here's how it works.

Quick answer

Milestone payment protection breaks a project into stages, each with its own deliverable and payment. Funds for every stage are committed up front and released only once that stage is reviewed and approved. It keeps delivery and payment in step, so neither side carries the whole project on trust and disputes stay contained to a single milestone.

Paying for a large project in one lump sum concentrates risk. If it is all paid up front, the client is exposed; if it is all paid at the end, the freelancer is. Milestones split the work — and the money — into smaller, verifiable chunks so risk is shared evenly across the timeline.

Each milestone has a clear deliverable and an amount. When the deliverable is approved, that milestone's funds release. If a disagreement arises, it is limited to the current stage rather than the entire contract, which makes it far easier to resolve.

KAZI implements milestone protection through escrow: the client funds the project into a protected balance, milestones are defined against the work, and each one releases on approval — connecting the project plan, the approvals and the payments in one place.

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FAQ

Common questions

How many milestones should a project have?

Enough that each represents a clear, reviewable deliverable — often three to six for a medium project. Too few and payment lumps up; too many and every stage needs its own approval overhead.

What happens if a milestone is rejected?

The funds for that milestone stay held until the deliverable is revised and approved. Because the dispute is scoped to one stage, the rest of the project and its committed funds are unaffected.

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