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Guide•July 3, 2026•4 min read

When to split a contract into milestones

Staged funding protects both sides on bigger jobs. Here is how to size milestones and what evidence to attach at each stage.

When to split a contract into milestones

A one-shot contract works for a single deliverable. But for a website build, a shop fit-out, or a bulk supply order, one big release is risky for everyone: the client fronts all the money for work that hasn't happened, and the provider waits until the very end to be paid. Milestones fix this.

How milestones work

You split the contract into stages, each with its own deliverable and amount, and the client funds the whole contract into escrow up front. When you deliver a stage and upload evidence, the client approves that milestone and its payout is released, net of the fee. One payout per milestone, on the record.

Sizing the stages

Each milestone should have a deliverable a stranger could verify: files handed over, a room painted, goods delivered to an address. If you cannot describe what 'done' looks like, the milestone is too vague. Balance the amounts so neither side is overexposed; a common pattern is deposit-and-balance for goods, or kickoff-build-delivery for projects.

What happens on rejection

A client can reject a delivery with a written reason. The milestone stays funded, the reason is attached to the milestone, and you fix the work and request release again. Nothing is lost and nothing is hidden; the whole exchange stays on the contract record.

Templates get you started

Saharix ships with pre-structured milestones for common jobs: freelance services, goods supply, bulk orders, rent, shortlets, home services, tutoring, event photography, and gadget purchases. Pick the closest one and adjust the amounts.

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Saharix Team

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