Managing Contracts

Understanding Contracts on Opengates

A contract on Opengates is a formal agreement between you (the freelancer) and a client. It defines the scope of work, the payment terms, the timeline, and the expectations for both parties. Contracts are created automatically when a client hires you — either by placing an order on one of your services or by accepting your proposal on a task.

Contracts are the backbone of how work gets done on Opengates. They protect both you and the client by clearly defining what is expected and ensuring that payment is handled securely through the platform's escrow system.

This article explains the two types of contracts, how to work within each type, and best practices for managing your contracts effectively.

Contract Types

Opengates supports two types of contracts:

Fixed-Price Contracts

A fixed-price contract is used when the total cost of the project is agreed upon upfront. The client pays a set amount for the entire project (or for each milestone within the project), regardless of how many hours you spend on the work.

Fixed-price contracts are ideal for projects with a clearly defined scope and deliverables. Examples include:

• Designing a logo ($300)
• Building a landing page ($800)
• Writing a set of 10 blog articles ($1,000)

How Fixed-Price Contracts Work

1. The contract is created with the total agreed amount.
2. The total amount is typically divided into milestones (explained in detail below).
3. You work on each milestone and submit your deliverables.
4. The client reviews and approves each milestone.
5. Upon approval, the milestone payment is released from escrow to your available earnings.

Hourly Contracts

An hourly contract is used when the scope of work is flexible or ongoing, and you are paid based on the number of hours you work rather than a fixed total amount.

Hourly contracts are ideal for:

• Ongoing maintenance work
• Projects where the scope may evolve
• Consulting or advisory roles
• Tasks that are difficult to estimate in advance

How Hourly Contracts Work

1. The contract is created with an agreed hourly rate.
2. You log your working hours using Opengates' time tracking tools.
3. Your time entries are submitted to the client for review, typically on a weekly basis.
4. The client reviews and approves your logged hours.
5. Payment for approved hours is released from escrow to your available earnings.

Working with Milestones (Fixed-Price Contracts)

Milestones are the building blocks of fixed-price contracts. They break a project into smaller, manageable chunks, with each chunk having its own deliverable and payment.

What Is a Milestone?

A milestone is a defined stage of a project with:

• A description of what will be delivered
• A payment amount (a portion of the total contract value)
• A due date (optional, but recommended)

For example, a $1,200 website project might have four milestones:

How Milestones and Escrow Work Together

When a milestone is created, the client funds it — meaning the milestone amount is placed into escrow. Escrow is a secure holding system managed by Opengates. The money is taken from the client's payment method and held safely by the platform. It is not in your account yet, but it is also no longer in the client's account. This guarantees that the money is available when you complete the work.

Here is the milestone lifecycle:

1. Client funds the milestone. The money is placed in escrow.
2. You work on the milestone. Complete the deliverables described in the milestone.
3. You submit the milestone. Upload your deliverables and mark the milestone as complete.
4. Client reviews the submission. The client examines your work.
5. Client approves (or requests revisions). If approved, the escrow payment is released to your available earnings. If revisions are needed, you make the changes and resubmit.

Requesting Milestone Release

After you submit your work for a milestone, the client is prompted to review and approve it. In most cases, clients approve promptly. However, if a client does not respond within a reasonable time:

• Send a polite reminder. Message the client through the platform to remind them that a milestone is awaiting their review.
• Auto-release policy. Opengates has policies in place that may automatically release milestone funds if the client does not respond within a certain number of days after submission. Check the platform's current terms for the exact timeframe.
• Dispute resolution. If there is a disagreement about whether the work meets the milestone requirements, you can open a dispute. Opengates' support team will review the situation and mediate.

Best Practices for Milestones

• Define milestones clearly. Each milestone should have a specific, measurable deliverable. Vague milestones lead to disagreements.
• Keep milestones manageable. Breaking a project into smaller milestones reduces risk for both you and the client. If a problem arises, only one small milestone is affected rather than the entire project.
• Do not start work on the next milestone until the current one is funded. This protects you from doing work that will not be paid for.
• Communicate before, during, and after each milestone. Keep the client informed of your progress.

Time Tracking (Hourly Contracts)

For hourly contracts, accurate time tracking is essential. Opengates provides built-in time tracking tools to help you log your hours accurately and transparently.

How to Log Time

1. Open the contract from your Dashboard or Contracts section.
2. Start the time tracker when you begin working. The tracker runs in the background and records your working time.
3. When you take a break or finish a work session, stop the tracker.
4. Add a description of what you worked on during that session. For example: "Implemented user authentication module" or "Reviewed and updated product page designs."
5. Your time entries are saved and visible to both you and the client.

Manual Time Entries

If you forget to start the tracker or work offline, you can add manual time entries. Include:

• The date and time you worked
• The number of hours
• A description of the work done

Use manual entries sparingly. Clients generally trust tracked time more than manual entries because the tracking tool provides verification.

Weekly Time Submissions

At the end of each work week, your logged hours are compiled into a weekly summary that is submitted to the client for review. The client can:

• Approve all logged hours, releasing payment from escrow.
• Dispute specific time entries if they believe the hours are inaccurate.
• Discuss entries with you before making a decision.

Best Practices for Time Tracking

• Be accurate. Only log time when you are actively working on the project. Do not include breaks, personal tasks, or time spent on other projects.
• Write clear descriptions. Detailed descriptions help the client understand what you accomplished and build trust.
• Submit consistently. Regular, predictable time submissions are easier for clients to review and approve.
• Communicate about hours. If a task is taking longer than expected, let the client know before the hours add up.

Communicating with Clients During a Contract

Good communication is the foundation of a successful contract. Here is how to communicate effectively:

Use the Platform's Messaging System

Always communicate through Opengates' built-in messaging system. This keeps a record of all conversations, which is important if any disputes arise. Avoid moving conversations to personal email or messaging apps.

Set Expectations Early

At the start of a contract, discuss:

• Work schedule: When will you be available to work? What are your working hours?
• Communication frequency: How often will you provide updates? Daily? Every other day? Weekly?
• Preferred communication style: Does the client prefer detailed written updates, quick check-ins, or video calls?
• Response time: How quickly can the client expect a response from you?

Provide Regular Updates

Do not disappear for days at a time. Even if there is nothing major to report, a brief message like "Making good progress on the homepage design, will have the first draft ready by Thursday" goes a long way in building trust.

Handle Issues Proactively

If you encounter a problem — a technical roadblock, unclear requirements, or a potential delay — tell the client immediately. Clients are much more understanding when they are informed early than when they discover a missed deadline after the fact.

Contract Completion

When all milestones have been delivered and approved (for fixed-price) or when the agreed scope of work is finished (for hourly), the contract is ready to be completed.

How to Complete a Contract

1. Ensure all deliverables have been submitted and approved.
2. Ensure all payments have been released from escrow.
3. Either you or the client can initiate contract closure by marking it as "Complete."
4. Both parties are prompted to leave a review and rating for each other.

Leaving Reviews

After a contract is completed, you will be asked to rate the client and leave a brief review. Similarly, the client will rate you. Reviews are important because they:

• Build your reputation on the platform.
• Help future clients decide whether to hire you.
• Help future freelancers decide whether to work with the client.

Be honest and professional in your reviews. Even if the experience was not perfect, focus on constructive feedback.

What Happens After Completion

• The contract is moved to your "Completed Contracts" archive.
• All earned payments are in your Available earnings (minus platform fees).
• Your profile stats (completed contracts, ratings) are updated.
• The client may re-hire you for future projects, either through a new task or by ordering another service.

Handling Difficult Situations

Client Is Unresponsive

If a client stops responding during a contract:

1. Send follow-up messages through the platform.
2. Wait a reasonable amount of time (48-72 hours).
3. If there is no response and you have completed work awaiting approval, Opengates' auto-release policies may apply.
4. If the situation persists, contact Opengates support for assistance.

Scope Creep

Scope creep is when a client gradually asks for more work than was originally agreed upon. If this happens:

1. Politely refer the client back to the original contract terms.
2. Explain that additional work requires an additional milestone or a contract amendment.
3. Offer to create a new milestone or a separate contract for the extra work.

Disputes

If you and the client cannot agree on whether work meets the contract requirements, either party can open a dispute. Opengates' support team will review the evidence (messages, deliverables, contract terms) and make a fair decision.

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