I am preparing to have a software application developed offshore in India, but have a concern about the advanced payment required by the company. The cost of the software is $7,000 with 30% due at contract signing and 10% due after each milestone is reached (7 milestones). This is my first time working with this company and the references came back positive. A contract is being drawn up, but don't know how easy it is to enforce in India. The way the developer has the payments set up, 50% of the payments will occur before one of the two major modules are developed. Would it be fair to the developer to ask for the following schedule?
30% placed in escrow on signing
10% milestone 1 & same for 2
10% plus 50% of escrowed amount due on milestone 3 (major milestone)
10% plus 50% of escrowed amount due on milestone 4 (major milestone)
10% each milestone after that.
Any other suggestions that would satisfy a developer and ensure that he doesn't disappear with my money?
Orignal From: Freelance development payment question and suggestions??
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