What is a firm fixed price contract?

If you're wondering, "what is a firm fixed price contract," it's the type of contract in which the person buying a product or service pays the seller a fixed amount that does not vary even if unexpected costs arise or additional resources are needed. 3 min read updated on February 01, 2023

What is a firm Price?

Firm price means the Agreement requires the delivery of products or services at a specific price, fixed at the time of the Agreement and not subject to any adjustment on the basis of Contractor ’s cost experience in performing under the terms of the Agreement.

What is a firm price contract?

However, elements of the price may be varied after an agreed period using an agreed mechanism” Therefore, a Firm Price Contract is where the price is set and fixed (and adjustments do not apply). The only mechanism for changing the Contract Price would be through an agreed change control.