Hourly rate clause for freelancers
An hourly rate clause: your rate, billing increments, time tracking, estimates and what happens when an estimate is exceeded.
Hourly rate clause: copy and adapt
The Provider will be paid [rate] per hour, billed in increments of [15] minutes. Time is tracked and a summary is included with each invoice. Any estimate given is a good-faith forecast, not a fixed price. The Provider will notify the Client before exceeding an estimate by more than [15]% and will not do so without the Client's approval.
When to use it
In any hourly or time-and-materials engagement. The approval threshold is what keeps the client comfortable and your invoices undisputed.
Variants by trade
Capped hours
Hours are capped at [40] per month. Work beyond the cap requires written approval and is billed at the same rate.
Developers
Time is logged per task in [tool]; the Client has read access to the log throughout the project.
Frequently asked questions
What billing increment should I use?
Fifteen minutes is the most common. Six-minute increments are standard in legal work; one hour is too coarse for most freelance jobs.
Do I have to stay within an estimate?
Not if it's labelled an estimate, but warning the client before you exceed it is what prevents disputes.
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These clauses are general templates, not legal advice. Laws vary by country and state; for high-value or unusual deals, have a lawyer review your contract.
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