Freelance Contract: A Free Service Agreement | Upwork Direct Contracts

3 min read Original article ↗

How do Direct Contracts work?

With Direct Contracts, you can create and send contract proposals to your clients that don’t yet have Upwork accounts. Just like your other contracts on Upwork, your client deposits project funds in escrow before the contract starts. When you’ve completed the work, you’ll request payment from your client. Once they’ve accepted your request, the funds are released to you.

As a freelancer, you’ll pay a 5% freelancer service fee of the total contract amount.

Please note that all transactions are in USD.

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How are Direct Contracts different from other Upwork contracts?

  • You can use Direct Contracts only with clients who do not have an Upwork account.

  • You will have a 5% freelancer service fee while Marketplace contracts have a 10% freelancer service fee.

  • You create the contract terms and send proposals to your client.

  • Once your work is approved on a fixed-price or hourly contract, the funds are released to your Upwork account within five days.

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What’s the cost for me as a freelancer?

Freelancers are charged a 5% freelance service fee. For example, if your earnings are $100 you’ll be charged a fee of $5. Please note that all transactions are in USD.

Can I have hourly and fixed-price contracts with Direct Contracts?

Yes! You can have both hourly and fixed-price contracts with the Direct Contracts option.

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How do I file a dispute?

Direct Contracts are supported by escrow services and dispute assistance. If a client has canceled a contract without payment or has failed to release a milestone payment despite the delivery of work, you can file a dispute.

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Do my earnings from Direct Contracts get included in my U.S. tax information that Upwork provides me at the end of the year?

Can I send the contract details page URL on my browser directly to my client?

No, please avoid sending your client the contract details page URL. Your client does not have an Upwork account yet, so they need a specially generated link to be able to access the contract information. We will send them the link to your contract via email, so let them know to be on the lookout for an email from Upwork.com.

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Can I set up a Direct Contract with anyone, anywhere in the world?

Currently, Direct Contracts are only available to freelancers and their clients in certain countries. If you attempt to sign up and you or your client are not eligible due to the country you live in, you’ll see an error message. We hope to expand Direct Contracts to more countries in the future.

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If needed, am I able to issue my client a refund?

Yes, you can issue a full or partial refund.

How do I switch my current contracts to a Direct Contract?

Existing contracts on Upwork cannot be changed to a Direct Contracts contract.