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Fixed price contract
A fixed price contract is a contract where the builder agrees to deliver the defined scope for a set price.
Why it matters
Fixed price can reduce budget surprises when scope is clear. Scope gaps still create change orders.
Where people get this wrong
Fixed price does not mean no changes. Changes still cost extra. A low fixed price can hide missing scope and low allowances.
Real-world example
You sign a fixed price deal, then discover the bid excluded site work. The contract price was fixed, but your total project cost was not.
Where this hits your build
This comes up early, before construction starts. It affects your contract, your budget, or both. Misunderstanding it can cost you money or leverage.
Most people do not just struggle with terms. They struggle with the decisions tied to them.
See how HouseChalk helps with the decisions behind terms like this