A Guide to Hourly and Fixed-Price Contracts
Understanding how and when funds move is essential for a smooth collaboration on goLance. The platform offers two primary contract types—Hourly and Fixed-Price—each governed by a specific set of rules and payment timelines.
Here is a breakdown of how these payment cycles function.
1. Hourly Contracts
Hourly contracts are based on an agreed-upon rate between the freelancer and the client. To ensure transparency, freelancers use the goMeter desktop application to log hours, which are then recorded in a Work Diary for mutual review.
Billing and Limits
Clients have the flexibility to enable Manual Time (billing without the goMeter) and set Weekly Hour Limits. It is important to note that any hours logged beyond the weekly limit are classified as overtime and are not counted toward the automatic billing cycle.
The Weekly Payment Lifecycle
Hourly payments follow a specific chronological path every week:
Monday (00:00 UTC): Charged The client’s payment method is charged, and funds are moved into escrow. This triggers a 5-day review period. During this time, employers can file disputes, and freelancers can delete time from the Work Diary. If a dispute is filed, goLance representatives assist in reaching a resolution (Approved, Declined, or Canceled).
Friday (13:00 UTC): Settled The review period ends and the 5-day security period begins. This period is designed to protect the platform from fraud and chargebacks. Freelancers will see the payment as "Pending" in their reports. For freelancers working with "trusted employers," this security period may be bypassed, allowing for immediate release.
Wednesday (00:00 UTC): Released The security period concludes, and funds are released to the freelancer. The final amount reflects the agreed-upon hours multiplied by the hourly rate, minus the goLance service fee.
2. Fixed-Price Contracts
Fixed-Price contracts operate on a deliverable-based system rather than tracked hours. These contracts are organized into one or more Milestones agreed upon during the proposal process.
The Milestone Lifecycle
Instead of a weekly schedule, funds move through the following phases based on project progress:
Created: Milestones are defined by name and price. They can be created manually by the employer or automatically when a freelancer’s offer is accepted.
Funded: The employer deposits the milestone amount into escrow. The status changes to "In Progress," notifying the freelancer that the funds are secured and work can begin.
Work Submitted/Payment Requested: Upon completing the task, the freelancer submits their work and requests payment. The requested amount can be adjusted if the scope of the task has changed.
Paid: Once the employer approves the submitted work, they authorize the payment.
Security Period: Following approval, all milestones are subject to a 5-day (120-hour) security hold before the funds are officially released to the freelancer.
Automated Options
For projects that require a recurring fixed fee, goLance provides an option to have fixed-price contracts automatically funded, validated, and paid on a regular schedule (such as weekly or monthly), combining the stability of a fixed price with the rhythm of a recurring cycle.
We hope this information has been helpful. If you have any other questions or require additional assistance, please contact our support team through the goLance chatbot. They will be more than happy to provide guidance.