Hourly vs. Fixed-Price Contract Differences

For Clients

Creating an offer:

  • Hourly: Negotiate an hourly billing rate during your interviews.
  • Fixed-Price: Negotiate a non-binding bid for the full project or break it up into milestones.

Working on a contract:

  • Hourly: Your freelancers need to have the Upwork Desktop App installed and running to qualify for Payment Protection. Manual time adjustments can be allowed and you can set a weekly limit on billable hours.
  • Fixed-Price: Funds are deposited into escrow. You review and release payment for a series of milestones as they are submitted.

Protection:

Payment:

  • Hourly: Billed on a weekly basis.
  • Fixed-Price: You submit deposits into escrow to be released at the completion of a milestone or project.

For Freelancers

Creating an offer:

  • Hourly: Negotiate an hourly billing rate during your interviews.
  • Fixed-Price: Negotiate a non-binding bid for the full project or break it up into milestones.

Working on a contract:

  • Hourly: You need to have the Upwork Desktop App installed and running to automatically log your hours for a contract. Clients decide whether manual time adjustments will be allowed and can set a weekly limit on billable hours.
  • Fixed-Price: You complete and submit a series of specified milestone deliverables to the client.

Protection:

Payment:

  • Hourly: Hourly jobs are paid on a weekly basis. Funds are available after a review and security hold period of five days.
  • Fixed-Price: Fixed-price jobs are paid into escrow and released at the completion of a milestone or project. Funds become available after a security hold period of five days.

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