Sometimes called a fixed-price or lump sum contract, the fixed bid contract establishes the total price for the work in accordance with the plans and specifications prepared by the client’s professionals: Labour, materials, trades, equipment rental and other required costs are determined in advance. The predetermined budget can only be changed if the original plans are altered through a notice of change approved by the client and the professionals involved in the project.
This contract is suited to clients that want a set budget and peace of mind throughout the project.