Fixed-Price
Fixed-price (Lump Sum) contract definition. Learn the risks and rewards of a guaranteed maximum price in construction.
Calculation Formula
Profit = Fixed Price - Actual Project Costs Real Contractor Example
You sign a contract to build a deck for exactly $25,000. If your costs come in at $18,000, you keep $7,000. If they hit $26,000, you lose $1,000.
Put This Into Practice
Knowing the definition is step one. RemodelFin tracks this in real time on every job — no spreadsheets.