Contract Pricing refers to the method of determining the price for goods or services outlined in a contract. This pricing can be fixed, meaning the price remains the same throughout the contract duration, or variable, where it may change based on specific conditions or market factors. In many cases, Contract Pricing is used in business agreements to ensure both parties understand the costs involved. It helps in budgeting and financial planning, as it provides clarity on what will be paid for the contracted work or products, reducing the risk of unexpected expenses.