Fixed Price Order Type Clause Samples

A Fixed Price Order Type clause establishes that the price for goods or services under the contract is set and not subject to change regardless of actual costs incurred. In practice, this means the buyer agrees to pay a predetermined amount, and the seller is responsible for managing any cost overruns or savings. This clause provides cost certainty for the buyer and incentivizes the seller to control expenses, effectively allocating the risk of cost increases to the seller and ensuring budget predictability for the project.