ECONOMICS

Detailed explanation-1: -As we learned, a fixed-price contract is a contract between a buyer and seller in which the purchase price of a product or service won’t change, no matter how long it takes the seller to finish the product or service and no matter how much the materials cost.

Detailed explanation-2: -A fixed-price contract is a contractual agreement with a predetermined value for the goods or services provided. A fixed-price contract sets the terms of a project and establishes the price of goods or services. It outlines exactly what the seller is required to do and the seller’s obligations for a firm price.

Detailed explanation-3: -Firm fixed-price contracts. Fixed-ceiling-price contracts with price redetermination. Fixed-price contracts with economic price adjustment. Fixed-price incentive contracts.

Detailed explanation-4: -Target Price means the estimated amount payable to the Contractor for the performance of the Work under a Cost Plus Fixed Fee (CPFF) Contract. This term is not relevant for contracts that are not Cost Plus Fixed Fee (CPFF) Contracts. Target Price means 125% of the Company’s Beginning Average Stock Price.

Detailed explanation-5: -2.2 A fixed price contract is a construction contract in which the contractor agrees to a fixed contract price, or a fixed rate per unit of output, which in some cases is subject to cost escalation clauses.