Fast, secure payments for projects outside Upwork

With Direct Contracts, you can create and send contract proposals to your clients that don’t 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 processing fee of 3.4% of the total contract amount but you won’t pay any freelancer service fees to Upwork. Your client won't have to create an Upwork account, keeping the experience easy to use for them.

‍Please note that all transactions are in USD.

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

• No freelancer service fees are deducted, just a 3.4% processing fee on the contract amount.

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

• Once your work is approved on a fixed-price contract the funds are released to your Upwork account immediately. Hourly contract earnings are released to your Upwork account within five days.

• Your client won't need to create an account.

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% processing fee. Please note that all transactions are in USD.

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.

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

Look for the paper airplane icon in your navigation bar.

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, initiate a dispute directly from the contract list page. Click "..." then "Get Help" and "Contact Us."

Freelancers can also take these steps to file a dispute.

Direct Contracts can be edited by you until your client accepts the contract and funds the project. If a change in terms or scope is needed after that, please reach out to your client to discuss. You can then cancel the existing contract and create a new one.

Go to My Jobs > Direct Contact to find the contract. Click on the (...) and you’ll see an option to “Cancel Contract” and include a personalized note.

Go to My Jobs > Direct Contracts to find the contract. Click on the (...) and you’ll see an option to “Request Payment” and include a personalized note. You must request payment for the full amount, not a partial amount.

In most cases U.S. freelancers—including those who earned more than $600—will not receive a Form 1099-MISC from Upwork or their clients. However, there are three important exceptions:

If you are a U.S. freelancer who receives over $20,000 and have more than 200 transactions you’ll receive a 1099-KYou live in a U.S. state that requires a 1099-K if you reach a certain earning threshold. In these cases, we will send you the 1099-K, if required.In addition, your client may decide to issue you a tax form if they believe they are required to do so. We recommend that all freelancers use their Earnings by Client report to accurately document your earnings. Learn more here.

• If you’re an U.S. freelancer enrolled in Upwork Payroll you’ll receive a W-2.

• If you are a U.S. freelancer who receives over $20,000 and have more than 200 transactions you’ll receive a 1099-K.

• You live in a U.S. state that requires a 1099-K if you reach a certain earning threshold. In these cases, we will send you the 1099-K, if required.

In addition, your client may decide to issue you a tax form if they believe they are required to do so. We recommend that all freelancers use their Earnings by Client report to accurately document your earnings. Learn more here.

On the freelancer/agency side:

• If terms of the contract need to be changed you must cancel and create a new contract with updated terms.

On the freelancer/agency side:

• Billing method must be PayPal, ACH bank transfers, or credit card.

• If terms of the contract need to be changed, the freelancer must cancel and create a new contract with updated terms.

• Clients cannot initiate a contract -- the freelancer must.

There is no ability/need for a client to create an Upwork account with Direct Contracts. Clients can access the contract via email from Upwork. If a client decides to create an Upwork client account, new contracts with that freelancer will be subject to freelancer service fees and client payment processing fees.

Please avoid sending your client the contract details page URL. Your client does not have an Upwork account, 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.

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.

Yes, you can issue a full or partial refund.

Sharing feedback is not an option with Direct Contracts.