Business, tax and funding
fixed price
In short and in plain language
A fixed price is a total sum agreed in advance. It is for a job that is clearly described.
Unlike paying by the hour, the sum is set before work starts. This holds as long as the agreed scope does not change.
So a clear and exact description of the work is important.
Definition
A fixed price is a total amount agreed in advance for a clearly described service. Unlike billing by the hour, the sum is set before work begins, as long as the agreed scope does not change. A precise description of the service is therefore important.