fixed-cost contract

fixed-price contract

A construction contract between an owner and a contractor in which the parties agree to carry out the terms of the contract for a specified price; does not customarily include the compensation paid to the architect and consultants, or the cost of the land.
McGraw-Hill Dictionary of Architecture and Construction. Copyright © 2003 by McGraw-Hill Companies, Inc.
References in periodicals archive ?
While Danos shoulders more risk under the fixed-cost contract, we like the idea of being able to do more for our customers, and in doing more we have the potential to share more in the reward, Danos said.
Paul Crosby, European property leader at TIP, said: "In addition to our traditional rental products we've invested heavily to strengthen our maintenance infrastructure and now offer total trailer services from fixed-cost contract maintenance to pay-as-you-go repairs, breakdowns and servicing."
Even with the new lead clinician position, Pendergast's fixed-cost contract with Futures has saved the district $100,000 annually, but McDonald finds the greatest value in the guarantee that he won't have to pay more even if more students qualify for special education services.
Firn hired Futures to analyze the school district's special education services during the 2007-2008 school year, and in the following year he inked a fixed-cost contract for the company to take over the special education program.
Bankruptcy Code, if a debtor chooses to reject any of its "Executory Contracts" (i.e., its pre-bankruptcy obligations such as equipment leases, real estate leases or other longer term fixed-cost contracts), and the court upholds those rejections, there is a formulaic guideline for determining the damages to the creditors.
Previous attempts to reform the industry have failed because they have not addressed key problems, most notably the lack of knowledgeable representatives on the owner side and the lack of true fixed-cost contracts.
Second, widespread adoption of truly fixed-cost contracts would enhance industry competition, and hence performance, even without the introduction of intermediaries.
Fixed-cost contracts must incorporate detailed drawings and specifications so no misunderstandings exist concerning the project scope and the specified materials.
With fixed-cost contracts, general contractors must protect themselves by adding extra monies for contingencies.
Augustine noted that for five decades government contracts have swung back and forth between fixed-cost contracts (which place all the financial risk on the contractor) and cost-reimbursable contracts (which place the financial risk on the government).
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