Hourly Projects vs. Fixed-Price Projects

Filed by team twago on August 21, 2017

 

For Clients

Creating a project or job:

  • Hourly Project: Select the “Hourly” option when posting your project. Ideal for longer term projects or jobs
  • Fixed-Price: Select the “Fixed-Price” option when posting your project. Ideal for one-time projects or tasks

Receiving offers “bids” from freelancers:

  • Hourly Project: Negotiate an hourly billing rate with freelancers making offers on your project
  • Fixed-Price: Negotiate a non-binding offer for the full project with freelancers. Pay on completion  or by self-created milestones

Working on a project:

  • Hourly Project: Your freelancers will complete weekly time sheets that need to be approved by you before the freelancer receives their weekly payment
  • Fixed-Price: Funds are deposited into escrow at your time of choosing either before or on completion of the project

Contracts & protection:

  • Hourly Project: When hiring an hourly freelancer you enter a binding contract and all payments on twago are protected by twago SafePay
  • Fixed-Price: When hiring an fixed-price freelancer you enter a binding contract and all payments on twago are protected by twago SafePay

Payments:

  • Hourly Project: Billed on a weekly basis (after you have approved hours reported)
  • Fixed-Price: You submit deposits into escrow to be released at the completion of a milestone or project

 


For Freelancers

Making an offer:

  • Hourly Project: Once you have found an hourly project that you wish to apply for (look for the “Paid by the Hour” badge), you simply state your hourly rate and weekly availability in addition to your project application “cover letter”
  • Fixed-Price: Once you have found a fixed-price project that you wish to apply for, you simply state your ‘bid price’ for the project in addition to your project application “cover letter”

Working on a contract:

  • Hourly Project: Once you have been hired by the client you enter a binding contract and your payments are protected by twago SafePay. Each week you will submit a time report for the client to review and approve.
  • Fixed-Price: Once you have been hired by the client you enter a binding contract and your payments are protected by twago SafePay. The client decides on when payment takes place. This can occur before, during or on completion of the project. If desired, the client may also set their own milestones.

Payments:

  • Hourly Project: Your working week is Monday – Sunday and time reports must be submitted by the end of the working week. Hourly projects are paid on a weekly basis (Saturday). Funds are available after a review period of five days in which the client must review and approve the reported hours.
  • Fixed-Price: Fixed-price projects are paid into an escrow wallet (twago Safepay) and released at the completion of a milestone or project. Funds become available when the client confirmed their approval.

 

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About the Author ()

team twago brings you the best news about working online as a freelancer and finding the right freelancer for your projects. You can find tips, tricks and guidelines for using the twago freelance platform, plus much more. Team twago is made up of native speakers from several countries.

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