IMPORTANT: I don't know how about others but my experience with Freelancer.com was just a nightmare. They actually allowed to steal my money twice!
Contests - there is a money back guarantee but be careful if nothing reasonable will be delivered they will ask you to extend the contest for additional fee, how many times I don't know but you will never get your money back. They will distribute your allocated budget to all the contest participants and that's it. No refund no nothing.
Projects: You can post projects get quotations, create milestones etc. If you have bad luck you'll award lousy provider that won't even be able do anything. They are all showing excellent designs but most of them are stolen form others. You will release some milestones for work that was done but even nothing tangible is delivered you may end up paying for everything because you either did not respond in time or that lousy provider raised dispute. Freelancer.com without checking anything can just transfer money to the provider any you'll end up with no money and undelivered project.
I have made one of the biggest mistakes trying it out.