A fixed price sets a single amount for a defined outcome, independent of actual effort.
Risk allocation. Effort risk sits with the supplier, who prices in a risk premium.
Precondition. Scope must be complete and unambiguous, or disputes shift to what the price covered.
Hybrid models. Capped T&M, milestone-based fixed pricing, fixed price with a variable success component.
Comparability. Only comparable when every supplier prices the same scope.