fixed-price contract

A fixed-price contract is an agreement in which a buyer and a seller set a specific price for goods or services before the work begins. This means the seller must deliver the agreed-upon products or services for that price, regardless of the costs they incur during the project. This type of contract provides certainty for the buyer, as they know the total cost upfront, while the seller assumes the risk of any unforeseen expenses. Fixed-price contracts are commonly used in construction, consulting, and various service agreements.