Go with a fixed fee for a set scope of work . . .

I don't like hourly and definitely don't go with hourly not to exceed.

Break it up in to multiple mile stones with incremental delivery, review/revisions and payment . . .

I would have early initial milestones so you make sure you and the client are on the same page . . . and that they are happy with the initial work and making payments . . .

If you can maybe quote 1 or 2 phases and see how the project is proceeding and if you are making a profit . . . you could also take some time to mock up a more difficult part to see how it's coming together and then quote that difficult phase as you are working on the initial ones . . . if a particular phase that you already have quoted don't be afraid to approach the client and see if you can work out an adjusted fee so you're both happy and a quality project is delivered.

I would setup the IP stating that you won't reuse the project in it's entirety but that you have the right to reuse portions of the code in previous, current and future projects. As most projects have modules you've used before, will use on your current project and on future projects.

There are some good boiler plate contracts out there.

Good luck with your first freelance project.