Upwork offers two main contract types, hourly contract. This is ideal for ongoing projects where the scope of work might evolve. You'll track your hours using Upwork's time tracker fixed price contract. This is perfect for well-defined projects with a clear deliverable. You'll agree on a fixed price upfront, and milestones can be established for payment installments.
Upwork empowers freelancers with diverse earning options to suit their preferences and project types. Projects can be offered on an hourly basis or a fixed-price basis.
- Fixed-price projects: These are perfect for projects with a well-defined scope and timeline. You agree on a fixed price with the client upfront and deliver the project within the agreed-upon timeframe.
- Milestones: A tool within fixed-price contracts that is a good option for breaking down larger projects into smaller milestones with payments released upon completion of each stage. Learn more about milestones below.
More about milestones
In Upwork fixed-price projects, milestones are checkpoints that mark the completion of specific project phases or deliverables. They break down the project into smaller, manageable stages and ensure that both the freelancer and client are aligned on progress and payment.
Here's a breakdown of how milestones work in Upwork fixed-price projects:
- Client funds milestones: When clients approve a fixed-price project, they pre-fund the total project cost into milestones on Upwork. This acts as escrow, ensuring the freelancer gets paid for completed work. Remember not to start any work project until your milestone is funded.
- Defining milestones: You and the client can work together to define specific milestones for your project. These could be tied to the completion of deliverables (e.g., Milestone 1: Design Mockup Completed), achievement of project phases (e.g., Milestone 2: Website Development Complete), or a combination of both.
- Milestone payments: Once the client completes and approves a milestone, the corresponding pre-funded amount from the escrow is released to the freelancer. This allows freelancers to receive payments as they progress through the project.
- Milestone flexibility: Upwork allows some flexibility in milestone creation. You can create milestones with different funding amounts and adjust them as needed throughout the project as long as both you and the client agree to the changes.
