Managing Contracts as a Client

Understanding Contracts on Opengates

A contract on Opengates is the formal agreement between you and a freelancer. It defines the scope of work, payment terms, timeline, and expectations. Once a contract is created and funded, the freelancer begins working, and you oversee the project through your client dashboard.

Opengates supports two types of contracts, each suited to different kinds of projects:

• Fixed-price contracts: The total price is agreed upon upfront, and the work is divided into milestones. You fund and approve each milestone individually.
• Hourly contracts: The freelancer works at an agreed hourly rate and logs time entries. You review and approve time entries on a regular basis.

This guide covers everything you need to know about managing both types of contracts from start to finish.

Your Contract Dashboard

Your contract dashboard is the central hub for managing all your active and past contracts. From here, you can:

• View a list of all your contracts (active, completed, and cancelled)
• Check the status of each contract
• View milestones and their progress (for fixed-price contracts)
• Review time entries (for hourly contracts)
• Access the messaging system to communicate with your freelancer
• Approve deliverables or request revisions
• Release payments from escrow
• Leave reviews after contract completion

Navigate to your contract dashboard from the main menu or your client profile page.

Managing Fixed-Price Contracts

Fixed-price contracts are structured around milestones — specific phases of work, each with its own deliverables, budget, and deadline. Here is how to manage them effectively:

Understanding Milestones

When you create a fixed-price contract, you define one or more milestones. Each milestone includes:

• Title: A brief description of the work to be completed in this phase (e.g., "Design mockups" or "Backend development").
• Description: Detailed information about what the freelancer should deliver for this milestone.
• Budget: The amount you will pay for this milestone.
• Deadline: When the milestone should be completed.

Milestones give you granular control over the project. Instead of paying for the entire project at once, you fund and approve each phase individually. This reduces risk and lets you assess the freelancer's work before committing to the next phase.

Funding a Milestone

Before a freelancer can start working on a milestone, you need to fund it. Funding a milestone means depositing the milestone amount (plus the processing fee) into escrow through Paystack. The funds are held securely until you approve the deliverables.

Processing fees:

• Standard accounts: 12% fee
• Premium accounts: 7% fee

For example, to fund a $300 milestone:

• Standard: You pay $336 ($300 + $36 fee)
• Premium: You pay $321 ($300 + $21 fee)

Tracking Milestone Progress

Once a milestone is funded, the freelancer begins working. You can track progress through:

• Status indicators: Each milestone shows its current status — Funded, In Progress, Submitted, Approved, or Revision Requested.
• Messaging: Communicate with your freelancer to get updates, ask questions, and provide guidance.
• Deliverable submissions: When the freelancer completes the milestone, they submit the deliverables through the platform.

Reviewing Deliverables

When the freelancer submits deliverables for a milestone, you receive a notification. Review the work carefully against the milestone description and your overall project requirements. Take your time to ensure the work meets your expectations.

Approving a Milestone

If the delivered work meets your expectations and fulfills the milestone requirements, approve the milestone. When you approve:

• The funds for that milestone are released from escrow to the freelancer.
• The milestone status changes to "Approved."
• The freelancer can proceed to the next milestone (if applicable).

Requesting Revisions

If the delivered work does not meet your expectations or needs changes, you can request revisions. When requesting revisions:

• Be specific: Clearly describe what needs to be changed. Vague feedback like "I don't like it" is not helpful. Instead, say something like "The header font should be larger, and the color scheme should use the brand colors I provided."
• Reference the original requirements: Point to specific items in the milestone description that were not met.
• Be reasonable: Revisions should address work that does not meet the agreed-upon requirements. Requesting entirely new work or significant scope changes is not a revision — it is a new milestone.

The freelancer will make the requested changes and resubmit the deliverables for your review.

Managing Hourly Contracts

Hourly contracts work differently from fixed-price contracts. Instead of milestones, the freelancer logs time entries as they work.

How Time Tracking Works

The freelancer tracks their working hours and submits time entries. Each time entry includes:

• Date: When the work was done.
• Hours: How many hours were worked.
• Description: What the freelancer worked on during that time.

Reviewing Time Entries

You should review time entries regularly — at least weekly. When reviewing, check:

• Are the hours reasonable? Consider whether the amount of time logged makes sense for the work described.
• Is the work description clear? The freelancer should describe what they accomplished during each logged period.
• Is progress being made? The time entries should align with visible progress on the project.

Approving Time Entries

Approve time entries that are accurate and reasonable. When you approve a time entry, the corresponding payment is released from escrow to the freelancer.

Disputing Time Entries

If you believe a time entry is inaccurate — for example, the hours seem excessive for the work described — you can dispute it. Contact the freelancer through messaging to discuss the discrepancy. If you cannot reach a resolution, you can involve Opengates support to mediate.

Setting Budget Limits

To control costs on hourly contracts, you can set:

• Weekly hour limits: Cap the number of hours the freelancer can log per week.
• Total budget cap: Set a maximum total budget for the entire contract.

These limits help prevent unexpected costs and keep the project within your budget.

Communicating with Your Freelancer

Effective communication is the cornerstone of successful contract management. Opengates provides a built-in messaging system powered by Azure Communication Services that lets you chat with your freelancer in real time.

Best Practices for Communication

• Set expectations early: At the start of the contract, agree on how often you will communicate (e.g., daily updates, weekly check-ins) and through which channel (Opengates messaging is recommended).
• Be responsive: When the freelancer asks questions or shares updates, respond promptly. Delays in communication can slow down the project.
• Give clear feedback: Whether praising good work or requesting changes, be specific and constructive.
• Keep it professional: Maintain a respectful, professional tone throughout the project.
• Stay on the platform: Keep all project communication within Opengates messaging. This ensures you have a record of everything discussed, which is important for dispute resolution.

Releasing Payment from Escrow

Payment release happens in different ways depending on the contract type:

Fixed-Price Contracts

Payments are released on a per-milestone basis. When you approve a milestone, the corresponding funds are automatically released from escrow to the freelancer. You control when to approve, so you are never paying for work that does not meet your standards.

Hourly Contracts

Payments are released when you approve time entries. Approved time entries are paid out based on the agreed hourly rate.

What Escrow Protects

The escrow system protects both you and the freelancer:

• For you: Your money is safe until you approve the work. If the freelancer does not deliver, your funds remain in escrow.
• For the freelancer: Once the work is approved, payment is guaranteed. They do not have to worry about clients refusing to pay after receiving the work.

Ending a Contract

Contracts on Opengates can end in several ways:

Successful Completion

The most common outcome is a successful completion. All milestones (or agreed-upon work for hourly contracts) are completed and approved, all payments are released, and both parties are satisfied. After completion, you will be prompted to leave a review.

Mutual Cancellation

If the project is no longer needed or both parties agree that the working relationship is not the right fit, you can mutually cancel the contract. Funds for unfunded milestones are not charged, and funded but unapproved milestones can be refunded based on the cancellation terms.

Dispute Resolution

In rare cases where you and the freelancer cannot agree on the quality of the work, you can open a dispute. The Opengates support team will review the evidence — including the contract terms, deliverables, and communication history — and help reach a fair resolution.

Leaving Reviews and Ratings

After a contract is completed, you have the opportunity to leave a review and rating for the freelancer. Reviews are a critical part of the Opengates ecosystem — they help other clients make informed hiring decisions and help freelancers build their reputation.

What to Include in Your Review

• Quality of work: Did the freelancer deliver high-quality results that met your requirements?
• Communication: Was the freelancer responsive, professional, and easy to communicate with?
• Timeliness: Did the freelancer meet deadlines and deliver on time?
• Overall experience: Would you hire this freelancer again? Would you recommend them to others?

Tips for Writing Helpful Reviews

• Be honest: Your review should accurately reflect your experience. Do not exaggerate — positive or negative.
• Be specific: Instead of saying "Great work," say "The freelancer delivered a clean, responsive website that matched the mockups perfectly and was completed 2 days ahead of schedule."
• Be constructive: If there were issues, describe them objectively and note how they were (or were not) resolved.
• Be fair: Consider the full picture. If the freelancer had a minor issue but resolved it quickly, reflect that in your review.

Your review is visible to the freelancer and to other clients. Both the rating (star score) and the written review contribute to the freelancer's overall profile.

Tips for Successful Contract Management

• Fund milestones promptly: Delays in funding can delay the project. Fund milestones as soon as you are ready for work to begin.
• Review deliverables thoroughly: Take the time to review submitted work carefully. Approving too quickly can mean missing issues; waiting too long can frustrate the freelancer.
• Communicate regularly: Regular check-ins keep the project on track and help catch issues early.
• Document changes: If the scope changes during the project, discuss it with the freelancer and update the contract or create new milestones as needed. Do not expect the freelancer to do additional work for free.
• Use the escrow system: Never pay freelancers outside the platform. The escrow system exists to protect both parties.

Still need help? Contact our support team and we'll be happy to assist you.