Browse Definitions :
Definition

fixed price

A fixed price is a non-negotiable sum charged for a product, service or piece of work.

The most common reason for a fixed price for a product is control or mandate by some external entity. A regulatory organization might set a fixed price for some commodity, for example. Fixed price contracts and services are an alternative to other models.

In procurement and project management, fixed price contracts stipulate what will be provided and what will be charged for it. Such contracts are not ordinarily open for adjustments or changes, although the contract may also include circumstances under which something may be changed and stipulate requirements for such a change, such as additional charges. Change requests may be required for anything outside of the scope of the original agreement. 

It can be a challenge to foresee how long a given project or piece of work will take and the resources that will be required. As such, it is inadvisable for an organization without extensive and relevant experience doing similar work to agree to a fixed price contract.

The term fixed pricing is used sometimes to refer to a system in which prices are relatively stable. For example, a product price on a website might be set and not changed for months or years. In this context, the term contrasts with dynamic pricing, a model in which online prices update automatically in response to various conditions.

This was last updated in April 2016

Continue Reading About fixed price

Networking
  • WAN (wide area network)

    A wide area network (WAN) is a geographically distributed private telecommunications network that interconnects multiple local ...

  • network protocol

    A network protocol is a set of established rules that specify how to format, send and receive data so that computer network ...

  • SD-branch

    SD-branch is a single, automated, centrally managed software-centric platform that replaces or supplements an existing branch ...

Security
  • Cloud Security Alliance (CSA)

    The Cloud Security Alliance (CSA) is a nonprofit organization that promotes research into best practices for securing cloud ...

  • quantum supremacy

    Quantum supremacy is the experimental demonstration of a quantum computer's dominance and advantage over classical computers by ...

  • YubiKey

    YubiKey is a security token that enables users to add a second authentication factor to online services from tier 1 vendor ...

CIO
  • transaction

    In computing, a transaction is a set of related tasks treated as a single action.

  • lean management

    Lean management is an approach to managing an organization that supports the concept of continuous improvement, a long-term ...

  • device ID (device identification)

    A device ID (device identification) is an anonymous string of numbers and letters that uniquely identifies a mobile device such ...

HRSoftware
  • talent pool

    A talent pool is a database of job candidates who have the potential to meet an organization's immediate and long-term needs.

  • diversity, equity and inclusion (DEI)

    Diversity, equity and inclusion is a term used to describe policies and programs that promote the representation and ...

  • passive candidate

    A passive candidate (passive job candidate) is anyone in the workforce who is not actively looking for a job.

Customer Experience
  • product-qualified lead (PQL)

    A product-qualified lead (PQL) is an individual or business that experienced value from using a product as a result of a free ...

  • marketing-qualified lead (MQL)

    A marketing-qualified lead (MQL) is a website visitor whose engagement levels indicate they are likely to become a customer.

  • customer success

    Customer success is a strategy to ensure a company's products are meeting the needs of the customer.

Close