Browse Definitions:
Definition

fixed price

Contributor(s): Matthew Haughn

A fixed price is a non-negotiable sum charged for a product, service or piece of work.

The most common reason for a fixed price for a product is control or mandate by some external entity. A regulatory organization might set a fixed price for some commodity, for example. Fixed price contracts and services are an alternative to other models.

In procurement and project management, fixed price contracts stipulate what will be provided and what will be charged for it. Such contracts are not ordinarily open for adjustments or changes, although the contract may also include circumstances under which something may be changed and stipulate requirements for such a change, such as additional charges. Change requests may be required for anything outside of the scope of the original agreement. 

It can be a challenge to foresee how long a given project or piece of work will take and the resources that will be required. As such, it is inadvisable for an organization without extensive and relevant experience doing similar work to agree to a fixed price contract.

The term fixed pricing is used sometimes to refer to a system in which prices are relatively stable. For example, a product price on a website might be set and not changed for months or years. In this context, the term contrasts with dynamic pricing, a model in which online prices update automatically in response to various conditions.

This was last updated in April 2016

Continue Reading About fixed price

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

SearchSecurity

  • copyright

    Copyright is a legal term describing ownership of control of the rights to the use and distribution of certain works of creative ...

  • keylogger (keystroke logger or system monitor)

    A keylogger, sometimes called a keystroke logger or system monitor, is a type of surveillance technology used to monitor and ...

  • password

    A password is an unspaced sequence of characters used to determine that a computer user requesting access to a computer system is...

SearchHealthIT

SearchDisasterRecovery

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • call tree

    A call tree -- sometimes referred to as a phone tree -- is a telecommunications chain for notifying specific individuals of an ...

  • mass notification system (MNS)

    A mass notification system is a platform that sends one-way messages to inform employees and the public of an emergency.

SearchStorage

  • RAID (redundant array of independent disks)

    RAID (redundant array of independent disks) is a way of storing the same data in different places on multiple hard disks to ...

  • data migration

    Data migration is the process of transferring data between data storage systems, data formats or computer systems.

  • compact disc (CD)

    A compact disc is a portable storage medium that can be used for recording, storing and playing back audio, video and other data ...

SearchSolidStateStorage

  • NVMe (non-volatile memory express)

    NVMe (non-volatile memory express) is a host controller interface and storage protocol to enable a solid-state drive to use the ...

  • SSD RAID (solid-state drive RAID)

    SSD RAID (solid-state drive RAID) is a methodology commonly used to protect data by distributing redundant data blocks across ...

  • Tier 0

    Tier 0 (tier zero) is a level of data storage that is faster, and perhaps more expensive, than any other level in the storage ...

SearchCloudStorage

  • RESTful API

    A RESTful application program interface breaks down a transaction to create a series of small modules, each of which addresses an...

  • cloud storage infrastructure

    Cloud storage infrastructure is the hardware and software framework that supports the computing requirements of a private or ...

  • Zadara VPSA and ZIOS

    Zadara Storage provides block, file or object storage with varying levels of compute and capacity through its ZIOS and VPSA ...

Close