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Contractor glossary

Fixed-Price Contract: Definition for Contractors

A contract for a set price regardless of the contractor's actual cost, putting the cost risk on the contractor.

What is fixed-price contract?

Fixed-Price Contract. A contract for a set price regardless of the contractor's actual cost, putting the cost risk on the contractor.

Why it matters to your pricing

Fixed price reads as professional and protects the client's budget — but it only works if your estimate is accurate and your scope and change-order process are tight.

This is a general educational definition, not financial or legal advice. Confirm anything regulated with your accountant or state board.
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