Fixed-price contract


Fixed-price contract

A contract in which the work will be carried out for a fixed lump sum without rise and fall cost adjustments, usually used for newer and short-duration projects.

fixed-price contract

A construction contract between an owner and a contractor in which the parties agree to carry out the terms of the contract for a specified price; does not customarily include the compensation paid to the architect and consultants, or the cost of the land.