How to ensure the project will be completed within budget if freelancer insists in hourly contract

[85bbfe3d]

Hi, 

Me and  the freelancer have agreed upon total price and business specs except using hourly payment or fix-price payment type.  I even offered the multiple milestones so he can get paid along the way.   Just wonder if anyone else have had the same problem before and what would be the best way to address the gap?  I don't see there is a total limit amount of money option in hourly contract.  The hours/week limit can not prevent a project turns into open ended.  I appreciated any advice or sharing your experience from the past how to deal with it.

Best regards,

Qian W

[richardrader]

Hello Qian,

On hourly contracts the freelancer will use the time tracker. Screenshots of their work can be seen in the work diary. https://support.upwork.com/hc/en-us/articles/211062278-Review-Your-Freelancer-s-Work-Diary If they don't use the time tracker than you can always dispute those hours and you would automatically get that money back (as their hours don't qualify for hourly protection). Do note you must dispute any hours during the review period as seen here https://support.upwork.com/hc/en-us/articles/211063668-Get-Paid-for-Hourly-Contracts

You can monitor your freelancer's progress as they work on the contract. If you feel like the work being delivered is not worth the hours spent, you can always close the contract at any time and find another freelancer.

You can also set a lower weekly limit and offer to increase it when they hit that week's hours. 

Or if you really want an fixed price model, you can always find a freelancer that will accept a fixed price model. A freelancer is free to reject working on project if they don't want to do fixed price contracts. Some projects make more sense as fixed price, and some make more sense hourly. 

[85bbfe3d]

Hi Richard,

Thank you so much clarifying.  It is very helpful!!  Additionally we have agreed for hourly contract that 1) set total payment limit to stop charging default credit card after the limit is reached, and 2) withhold certain amount payment after project completion.  But I don't see there are options in the payment plan to choose it from.  What are your suggestions in this scenario?  Do I use a prepaid CC with agreed amount with freelancer because keep tracking of spent money weekly is some kind of work.

Best regards,

Qian W.

[richardrader]

You can do neither on the UpWork interface. You will need to talk to your freelancer to come up with an agreement or find a freelancer who will do Fixed Price.

[85bbfe3d]

Okay,  I've spent all time walkthrough specs with the freelancer.  Will I still be protected via upwork if the freelancer agrees to terms but they're not listed in the hourly contract though?

Thanks

Qian W,

[richardrader · Accepted solution]

The way hourly contracts work is that you are paying for their time and not the quality of their work. A freelancer is protected for all time as long as they do the following...

1) Use the time tracker
2) Screenshots show that they are working on the project
3) They leave good quality memos while they work. 

You are protected if one or more of these conditions is not met. Additionally manual time and work done over the weekly limit will always go in your favor if a dispute ever were to arise. There is no such thing as a total limit on Upwork for hourly contacts but you are allowed to add your own conditions in the contract (be sure to include them on the contract itself and not just verbally). In terms of how enforcable these added items are, it might be best to contact UpWork support https://support.upwork.com/hc/en-us

[85bbfe3d]

Thanks much.  You're 100% correct.  I've contacted support and was told I cannot file a dispute if I am not satisfied with the freelancer's work even if there were additional conditions added/written to the hourly contract.  

[prestonhunter]

If this is a large project, and if saving money is an important consideration, then you should definitely consider hiring multiple freelancers.

Does your project have 50 modules that must be completed?
Hire Joe, Mary, Camille and Tom using hourly contracts.

Joe finished a module. It cost you $100.

Mary finished a module. It cost you $200.

Camille finished a module. It cost you $300.

Tom never did anything. He logged no time. You paid him nothing.

After closely comparing their work, you concluded that the quality was identical.

You thanked Mary and Camille for their work and ended their contracts. You continued working with Joe.

Think about how much money you saved working with Joe instead of Camille!