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.

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

  • compliance audit

    A compliance audit is a comprehensive review of an organization's adherence to regulatory guidelines.

  • regulatory compliance

    Regulatory compliance is an organization's adherence to laws, regulations, guidelines and specifications relevant to its business...

  • Whistleblower Protection Act

    The Whistleblower Protection Act of 1989 is a law that protects federal government employees in the United States from ...

SearchSecurity

  • Malwarebytes software

    Malwarebytes is a cross-platform anti-malware program that detects and removes malware and other rogue software.

  • Transport Layer Security (TLS)

    Transport Layer Security (TLS) is a protocol that provides authentication, privacy, and data integrity between two communicating ...

  • van Eck phreaking

    Van Eck phreaking is a form of electronic eavesdropping that reverse engineers the electromagnetic fields (EM fields) produced by...

SearchHealthIT

SearchDisasterRecovery

  • cloud insurance

    Cloud insurance is any type of financial or data protection obtained by a cloud service provider. 

  • business continuity software

    Business continuity software is an application or suite designed to make business continuity planning/business continuity ...

  • business continuity policy

    Business continuity policy is the set of standards and guidelines an organization enforces to ensure resilience and proper risk ...

SearchStorage

  • solid-state storage

    Solid-state storage (SSS) is a type of computer storage media made from silicon microchips. SSS stores data electronically ...

  • persistent storage

    Persistent storage is any data storage device that retains data after power to that device is shut off. It is also sometimes ...

  • computational storage

    Computational storage is an information technology (IT) architecture in which data is processed at the storage device level to ...

Close