Fixed Fee
A fixed fee is a single agreed price for a defined scope of work.
With fixed-fee pricing, the provider quotes one price for the entire engagement regardless of hours spent. The client gets cost certainty; the provider keeps any efficiency gains but absorbs overruns. Fixed fees only work fairly when the scope is clearly defined — anything outside it should be handled as a change order.
Example
A designer quotes a $4,000 fixed fee for a complete brand identity package.
Related terms
Frequently asked questions
What happens when fixed-fee work goes over scope?
Out-of-scope work should be priced via a change order agreed before the extra work starts. Doing the work first and arguing about the fee later is how fixed-fee engagements go wrong.
Should fixed-fee invoices show hours?
They do not have to, since the price is not hour-based. But a brief scope summary on the invoice helps the client connect the fee to the delivered value.
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