Construction Glossary
Fixed Price
Definition
A fixed price means the contractor agrees to carry out a defined scope of work for an agreed sum that does not change with the actual cost. The price only moves if the scope changes through variations. The risk of cost overruns on the agreed work sits with the contractor, not the client. It gives the client cost certainty for the work as defined.
Under a fixed price, also called a lump sum, the contractor takes a view on what the work will cost and commits to a single figure. If materials or labour cost more than expected, that is the contractor's problem, and if they cost less, that is the contractor's gain.
The price does change for genuine variations, where the client alters the scope, which is why a clear scope and measurement matter so much.
Why it matters
Fixed price work gives the client certainty but puts the risk on you. The only protection is an accurate price built on a clear scope. Underprice it and you carry the loss with no comeback, so precise measurement before you commit is everything.
We measure and price your work accurately before you commit to a fixed price, so you quote with confidence rather than carrying hidden risk.
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