Firm-Fixed-Price Contract
/ˌfɜrm ˌfɪkst ˈpraɪs ˈkɒntrækt/
Definitions
- (n.) A contract type where the price is set and not subject to adjustment based on the contractor's cost experience.
The government awarded a firm-fixed-price contract to the supplier to ensure budget certainty.
Forms
- firm-fixed-price contract
- firm-fixed-price contracts
Related terms
See also
Commentary
Firm-fixed-price contracts shift the cost risk to the contractor, favoring cost predictability for the buyer.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.