Contracts
Fixed price
A contract where the supplier delivers an agreed scope for an agreed total, whatever it actually costs them.
A plain-English explanation of how this usually works, not legal advice. Rules differ between countries and change over time, so check your own situation. Disclaimer.
You'll hear it as
It's fixed price, so any extras are a change request.
Why it matters to you.
Fixed price moves the risk of overruns to the supplier, so the scope gets defined very tightly and argued over.
Related terms.
Videos.
No video mentions Fixed price by name yet. These are on the same topic, Business & startups.