Fixed-Price Contracts
A fixed-price contract is a type of agreement where the buyer and seller agree on a specific price for a project or service before work begins. This means that the seller is responsible for completing the work within the agreed budget, regardless of any unforeseen costs that may arise during the project.
These contracts are commonly used in industries like construction and manufacturing, where the scope of work can be clearly defined. They provide certainty for both parties, as the buyer knows the total cost upfront, while the seller can plan their resources and manage their expenses effectively.