This article explains the Contract Initiation Fee on Upwork, a one-time fee of up to $14.99 USD that you pay when starting a new Marketplace or Project Catalog contract. The fee is charged when the first payment is made to the freelancer and applies to each new contract, even with freelancers that you have worked with before. It appears as a separate line item in transaction history and invoices but does not show on the Weekly Billing Summary. The fee is non-refundable after payment, even in cases of disputes, and applies to both freelancers and agencies.
When you start a new Marketplace or Project Catalog contract, you pay a one-time Contract Initiation Fee of up to $14.99 USD. We charge this fee when you make the first payment to a freelancer.
You’ll pay this fee for each new contract, even if the contract is with a freelancer you’ve worked with before. The fee you pay can vary from contract to contract, depending on factors such as contract type, account history, and hiring activity.
You’ll see the exact fee that you’re paying as a separate line item when you check out. After you pay the fee, you’ll receive a separate invoice for it, along with any applicable taxes. You will also see it as a separate line item in your Transaction History, but it will not appear on your weekly summary.
Frequently Asked Questions
No, we realize not all contracts have work started on them, or funds paid out. For hourly contracts, we charge the fee when you make the first payment to a freelancer, including hourly payments, bonuses, or any other payments. For fixed-price contracts, you’ll pay this fee when you fund the contract or first milestone. (it will be returned to you if the milestone ends up not being released).
Yes, you’ll pay the once-per-contract fee when you fund the first escrow deposit for fixed-price contracts. However, if the contract is canceled and no payment is released to the freelancer, we’ll return the Contract Initiation Fee.
No, if you are continuing an existing contract and just adding milestones, you will not have to pay the Contract Initiation Fee again.
You’ll be able to see the exact amount for your contract when you check out. The fee will show as a separate line item.
No, the once-per-contract initiation fee will not be refunded after you have made a payment to a freelancer, even if the freelancer issues you a refund.
No, the once-per-contract initiation fee isn’t eligible for a refund after you have made a payment to a freelancer, even if the contract payment to the freelancer is refunded due to a dispute.
You’ll receive a separate invoice for the Contract Initiation Fee, which includes the fee and any applicable taxes. You can also see the fee and any applicable taxes as line items on your transaction history. It does not display on your Weekly Billing Summary, which reflects payments to freelancers.
Yes, you will pay the Contract Initiation Fee for the start of a new contract with an agency.
Yes, the fee is per contract. If you start a new contract, you’ll pay the fee even if you have worked with the freelancer before. (If you are adding a new milestone to an existing fixed-price contract, you will not be charged the fee again).
Yes, each new contract with a different freelancer will have a once-per-contract initiation fee, even if all the freelancers work for the same agency. If you hire three freelancers to work on a job, you’ll pay the fee three times.
Direct Contracts have the same client fees as other Marketplace contracts, including the Contract Initiation Fee. The other services (Upwork Payroll, Any Hire, Direct Contracts) have their own fee structures designed specifically for the features they offer.
