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Direct Contracts now live for all freelancers

lenaellis
Community Member

To help grow and support your freelance business on and off Upwork, we are releasing Direct Contracts to all Upwork freelancers today. With this new release, we have also expanded the functionality to now include multiple milestones. 

 

Direct Contracts allows you to enter into fixed-price contracts with non-Upwork clients, offering access to Upwork's safety and security features with greater flexibility for your business. Freelancers can access their Direct Contracts by clicking on the new paper airplane icon next to notifications or directly here.

 

Direct Contract Icon.png

 

Here’s how it works: 

 

On the Direct Contracts page, freelancers will see the option to start a new Direct Contract and a list of all existing Direct Contracts along with the status of that contract.

 

The steps to start a new Direct Contract are very simple:

 

1. Enter your client’s details

1. Create.png

 

2. Add either a single amount or create milestones with each amount

MM - Collapsed.png

 

3. Review and send the contract

3. Review.png

 

4. An email is sent to your client to begin

4. Confirmation.png

 

 

Your client will receive an email notifying them of your detailed proposal, along with some guidance on how the product works. 

 

Just like your other fixed-price contracts on Upwork, your client deposits project funds in escrow before the contract starts. You will see the status of the milestone listed below each one, so you will know when to begin working. When you’ve completed the contract or each milestone, you’ll request payment from your client. And with Direct Contracts, once they’ve accepted your request, the funds are released to you immediately, with no security period.

 

5. - Active - m1.png

 

As a freelancer, you’ll pay a processing fee of 3.4% of the total contract amount, but you won’t pay any freelancer service fees to Upwork. It’s easy for your clients because they won’t have to create an Upwork account.  And with payment protection and dispute assistance, you can work confidently with your clients who are not on Upwork. 

 

Let us know if you have any questions.

 

405 Comments
AleksandarD
Community Manager

Hi Zubair,

 

Direct Contracts makes it easy to get paid by your clients who don’t have a full account on Upwork and just need access to review your invoices and make payments. With Direct Contracts you also get the protection of escrow and if a dispute arises we will be happy to help. Also, freelancers are charged a 3.4% payment processing fee. For example, if your earnings are $100 you’ll be charged a payment processing fee of $3.40 USD. You are not charged a freelancer service fee, only the 3.4%. Clients also are not charged any fees.

 

Please note that since your client and you will only be using Upwork for invoicing and payments, any Direct Contracts will not impact your Upwork reputation metrics (for example your Job Success Score or Top Rated status). These contracts also will not be included in your other Upwork profile stats, such as total earnings, number of jobs, etc.

 

I suggest that you take a look at this help article for more information.

 

Thank you.

shauntecotterell
Community Member

I'm providing tutoring services to an international student. Because of the location issue, I'd like to set up a direct contract so that we can have a smooth payment process. Is it possible for a direct contract to be set up with a client who is an individual and not a business entity or agency? 

 

I previously tried with Payoneer directly but as the funds weren't being transferred from a business account the processing was rejected. Paypal isn't a viable option either and I'm really trying to avoid the wire transder route. 

sierrcho
Community Member
I had invited a UK based client for a direct contract on Upwork and there seems to be some problem with its payment method.
It kept on giving error messages while my client paid the funds. Now they've made total 4 payments (Each time getting error message of 'payment unsuccessful'). I want to know whether Upwork will refund them and how long will it take.
Thank You.
AndreaG
Moderator

Hi Shaunte,

 

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 this message: “We’re sorry to inform you that Direct Contracts are currently not available in your country.” We hope to expand Direct Contracts to more countries in the future.

Otherwise, your client should be able to use a credit card or PayPal to fund the contract. Learn more about Direct Contracts here.
 
Thanks!
 
Thanks!
AndreaG
Moderator

Hi Shoaib,

 

I can see you were able to submit a support ticket with our team regarding this. Please allow some time for our team to review and they will update you directly via ticket as soon as possible.

 

Thanks!

zubairkhan7770
Community Member
i want my fiver client to move here on upwork, if my client make a profile,
will this improve my ratings? overall earning?, job score?, and what will
be the service fee?
AleksandarD
Community Manager

Hi Zubair,

 

In that case, the client will need to create an account and hire you on a contract. After ending the contract, they can leave feedback. They'll be paying 3% payment processing fees and the freelancer service fees would apply for you.


Thank you.

webwebby
Community Member

I've lots of links within my niche and many clients come to me with their requirements. We're usually sitting far so mostly communication happens through WhatsApp, Skype etc.

 

I'm planning to use the Direct Contract feature. However, what about communication? Do I need to bound them to keep communication on UW? Or I still can use WhatsApp, Skype?

 

Secondly, can I get reviews on Direct Contracts to show on my UW profile?

 

In other words, UW will be a way to transfer funds, get reviews etc.

AndreaG
Moderator

Hi Waseem,

 

When working on Direct Contracts you can continue to communicate with your clients as usual. On the other hand, since your client and you will only be using Upwork for payments, any Direct Contracts will not impact your Upwork reputation metrics (for example your Job Success Score or Top Rated status). These contracts also will not be included in your other Upwork profile stats, such as total earnings, number of jobs, etc. 

 

Thanks!

62cf0957
Community Member

My client has been unable to make payment through a direct contract for the past few days.

Now I have 2 questions.

Previously it was said that the client won't be needing to pay any fee while making payments. But today, the payment page showed, that client needs to pay a fee of 3%. 
Are there any changes in policy that I am not aware of?

And secondly, he is unable to make payment. It says "Upwork is unable to continue the contract process".

Can I know why? 

PS: I have attached screenshots.

Any help is appreciated.