This article presents the two project types on Malt — time-based and fixed-price — along with their payment and validation terms.
- Two project types: time-based (monthly activity report) and fixed-price (deliverables).
- Time-based projects can be prepaid or paid on invoice.
- End-of-project validation triggers payment to the freelancer.
Different Project Types on Malt
You can track your projects’ progress under the “Manage projects” tab.
Here, you will see the status of all your projects—upcoming, in progress, or completed.
On Malt, there are two types of projects:
• Time-based projects: where the freelancer bills for the hours worked.
• Task-based projects: where the freelancer bills for the number of deliverables completed.
Time-Based Projects on Malt
Time-based projects work well for longer engagements, allowing you to split the work and payments over several months based on the days worked.
You get a clear view of the entire project timeline, past and upcoming months, along with your invoices and order summaries.
Freelancers submit a monthly report of days worked, which you review and approve before payment is made. When the freelancer submits their activity report, you’ll receive an email asking you to review it.
If no action is taken, the timesheet is automatically approved on the 19th of the following month.
To review, go to the Manage projects tab and click “Approve”
After approval, you’ll be taken to the invoicing page where you can add the purchase order number, invoice date, and billing contact.
Important: If no action is taken, the activity report is automatically approved in 10 days post submission.
In a time-based project, the freelancer is paid on a monthly basis based on days recorded in their activity report. Depending on your eligibility for payment by invoice, your payment term will fall into one of two categories: Time-Based Prepayment or Time-Based in Invoice Before Payment.
Time base in Prepayment
You must prepay an estimated monthly amount into escrow at the beginning of the month to start and continue the project. These funds are safely held by Malt until the freelancer completes their monthly work.
• Why do I have to prepay an estimated amount? The prepayment mechanism is key to guaranteeing the freelancer's payment. By placing the funds in escrow, you ensure the freelancer can start work immediately with full confidence that their labor is secured.
• How is it calculated? Malt calculates the estimated days to determine the initial prepayment amount. It is based on the total project days divided by the number of months the project will span, ensuring a fair monthly distribution of the total project work.
Example: If the freelancer is scheduled to work 20 days across January, February, March, and April (4 months), your prepayment will be based on 5 days of work per month.
At the end of the month, the final payment is adjusted based on the actual days the freelancer declares on their activity report. The adjustment ensures you only pay for the work performed. After the freelancer submits their timesheet.
• What happens if I have prepaid more than the freelancer worked ? You will receive an automatic refund for the difference.The amount is automatically credited to your Malt wallet. ). You can then transfer the funds from your wallet back to your bank account.
• Important: You must have completed your billing information to have a wallet and the freelancer you are working with must be compliant to enable automatic reimbursement.
Note: Funds in your Malt wallet cannot be used to prepay a new project.
What happens if I have prepaid less than the freelancer worked ? You will be required to pay the final balance covering the extra days. Once paid, the full, adjusted funds are released to the freelancer.
Time base in Invoice Before Payment
To start a time-based project in Invoice Before Payment , you must be authorized to pay by invoice. If your project and profile meet the required conditions for time-based projects, freelancers will automatically be able to send you a quote under this model.
In a time-based project, the freelancer is paid on a monthly basis. They record the number of days worked in their activity report directly within the project interface. As the client, you review and approve this report, after which the monthly invoice is issued.
With payment by invoice, you pay the freelancer after approving the freelancer activity report and confirming the month is complete. At the end of each month, we send an invoice to your company’s accounting department for the services provided. Your payment terms depend on your agreement with Malt, and you can find these details on your invoices.
If you have any questions about time-based projects, please contact your account manager through your dashboard or email us at support@malt.com.
Task-Based Projects on Malt
Task-based projects are ideal for shorter projects that usually last less than a month. In this format, the freelancer commits to working on the project until all agreed deliverables are completed and delivered.
How to accept a freelancer’s quote?
After discussing your project with freelancers, they will send you a proposal.
Whether or not you accept, it’s important to inform all freelancers you’ve communicated with about the status of the project.
To accept a quote, simply click “Accept project proposal.”
Once accepted, other freelancers who sent quotes for the same project will be notified that the project has been assigned.
Can a quote be updated?
Quotes can be updated anytime before the project is marked complete, giving you flexibility during the project. Only the freelancer can update the quote, and you’ll be notified when they do.
Approving the end of the project
After the freelancer submits their work, they can mark the project as complete. You then approve the completion, which triggers payment.
You have 15 days to approve the completion. If you don’t act within this period, the project will be marked complete automatically.
To approve completion:
• Go to your dashboard
• Select the project
• Click “Mark complete”
If you’re not satisfied, you can submit a dispute form.
What happens when you mark a project as completed?
If the project was prepaid, the funds are automatically released to the freelancer (unless the quote was updated with a higher amount—in that case, you pay the difference).
If payment is still due, you’ll be taken to a payment page to complete it trough bank card or transfer.
The project goes from “in progress” to “completed” status.
Why Use Malt for your projects?
When working with a freelancer found on Malt, the quote must be created and approved on our platform.
Using Malt offers you several benefits:
• Secure payments: Your funds are held by our payment operator and only released to the freelancer after you approve the project’s completion.
• Protection: Freelancers on Malt are covered by Hiscox's professional liability insurance, protecting you from any damages caused by the freelancer.
• Recommendations: After the project, you can leave a review to help freelancers build their reputation and help other clients make informed choices.
• Standardized invoicing: Malt generates invoices on behalf of freelancers, making it easier to manage your accounting.
By using Malt, you agree to work fairly through the platform, meaning you won’t engage freelancers found on Malt outside the platform.
If any users who connected through the marketplace later arrange projects outside of the marketplace, violating article 9.3, the company will issue the client an invoice for a fixed amount of EUR 10,000 as compensation, which the client agrees to pay immediately upon receipt.