What is the Contract Initiation Fee on Upwork?

In this article

• What is the Contract Initiation Fee on Upwork?
• How much is the Contract Initiation Fee for clients?
• How often do I pay the Contract Initiation Fee?
• When do I pay the Contract Initiation Fee?
• Do I pay the Contract Initiation Fee again if I add new milestones to an existing contract?
• If I rehire a freelancer I’ve worked with before, will you charge the Contract Initiation Fee?
• If a freelancer refunds my contract payment, will you also refund my Contract Initiation Fee?
• If I dispute a contract and win my dispute, will you refund my Contract Initiation Fee?
• If I hire multiple freelancers for one job, will I have to pay the Contract Initiation Fee on each freelancer’s contract?
• Where can I see the Contract Initiation Fee I was charged?
• Are you charging the Contract Initiation Fee on Direct Contracts, Business Plus, Upwork Payroll, Any Hire, or Enterprise contracts?

What is the Contract Initiation Fee on Upwork?

This is a fee clients pay when starting a new Marketplace or Project Catalog contract. This fee applies to each new contract you start with a freelancer or agency.

How much is the Contract Initiation Fee for clients?

You pay a one-time Contract Initiation Fee ranging from $0.99 to $14.99 USD.

• With fixed-price contracts, you’ll see the fee that you’ll pay as a separate line item when you checkout.
• For hourly contracts, you'll see the fee amount when you make the first payment to the freelancer.

Note: The fee you pay can vary from contract to contract, depending on factors such as contract type, account history, and hiring activity.

How often do I pay the Contract Initiation Fee?

You’ll pay this fee once for each new contract. This includes if the contract is with a freelancer you’ve worked with before.

When do I pay the Contract Initiation Fee?

For hourly contracts, we charge the fee when you make the first payment to a freelancer. 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.)

Do I pay the Contract Initiation Fee again if I add new milestones to an existing contract?

No, if you are continuing an existing contract and just adding milestones, you will not have to pay the Contract Initiation Fee again.

If I rehire a freelancer I’ve worked with before, will you charge the Contract Initiation Fee?

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).

If a freelancer refunds my contract payment, will you also refund my
Contract Initiation Fee?

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.

If I dispute a contract and win my dispute, will you refund my Contract Initiation Fee?

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.

If I hire multiple freelancers for one job, will I have to pay the Contract Initiation Fee on each freelancer’s contract?

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.

Where can I see the Contract Initiation Fee I was charged?

You can find it in your Transaction History.

Are you charging the Contract Initiation Fee on Direct Contracts, Business Plus, Upwork Payroll, Any Hire, or Enterprise contracts?

Direct Contracts have the same client fees as other Marketplace contracts, including the Contract Initiation Fee. Business Plus contracts of $100 USD or less have a Contract Initiation Fee. The other services (Upwork Payroll, Any Hire, Enterprise) have their own fee structures designed specifically for the features they offer.