Fixed fee

An agreed price for a defined scope of work, subject to the contract’s exclusions and change-order terms. The advisor generally bears overrun risk within that agreed scope.

Fixed fee in practice

Hypothetical: a consulting firm quotes a fixed fee for an operations review and agrees which sites, processes and deliverables are included. Additional work is handled under the contract’s change process.

Time and materials · Scope creep · Retainer · All of the glossary