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What is Fixed-Price Contract?
A fixed-price (or lump-sum) contract locks in the total cost for a defined scope of work. The contractor absorbs cost overruns but also keeps any savings if the work goes faster or cheaper than expected.
Examples
- A $48,000 fixed price for a defined kitchen remodel.
- A lump-sum roofing replacement with a clear material spec.
- A fixed-price bathroom renovation with detailed allowances.
Why this matters
MarkupAlert shows you whether a fixed price is actually covering everything, or hiding allowances that will balloon into change orders.
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