Fixed price
A price that does not change when labour or material costs rise, unless your contract says it does.
by Jack Butler-Kettle · About 1 min readShare
Further detail
Fixed price normally allocates ordinary cost movements to the party carrying out the work, subject to the agreed terms. It does not necessarily exclude adjustments for instructed changes, specified fluctuation provisions or other contractual events. The label alone does not settle every change in price. Compare this with a guaranteed maximum price (GMP), where the agreed ceiling and its exceptions need to be read together.
Distinguish increased input costs from changed scope. Our Main-contract tender pricing service records the assumptions and exposure accepted in a fixed price. A Contractual price increase recovery needs a supported basis for transferring an increase to the other party.