Fixed bid

PricingOhio homeowner glossaryCC-BY-4.0

TL;DR

A set project price for a defined scope. It reduces price uncertainty but should spell out exclusions and how change orders are handled.

Definition

What it means

A set project price for a defined scope. It reduces price uncertainty but should spell out exclusions and how change orders are handled.

Category

Where it sits in the glossary

Fixed bid is part of the Pricing group inside the ProFix Directory glossary. Browse every term in this category from the glossary index.

Why this matters for Ohio homeowners

Why Ohio homeowners should know it

A fixed-bid contract names the price for a defined scope, regardless of how long the work takes or how much material it consumes. It is the right model for jobs whose scope is well understood — a known water-heater swap, a typical panel upgrade, a defined driveway pour.

The biggest risk in fixed-bid work is hidden conditions: a sewer line that turns out to be cast iron, framing that has been water-damaged, electrical that was never to code. A good fixed bid spells out what is excluded and how change orders are triggered if the unexpected happens.

Tools that use this concept

ProFix tools that touch this term

Common confusions

Where this term gets mixed up

Fixed bid vs. not-to-exceed

Fixed bid is the same number regardless of hours. Not-to-exceed is T&M with a ceiling. Different mechanics.

Fixed bid does not mean no surprises

Even a fixed bid can grow through change orders if the original scope misses a condition.

Source

Where this term comes from

Standard construction contract practice.

See also

License: CC-BY-4.0 — quote freely with attribution to ProFix Editorial Team / ProFix Directory.

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