thinQmaster Virtual testing partner Adaptive practice exams that find your weak spots and drill them. Every answer explained. From $69
Enroll

thinQmaster

Find your exam

Five questions free, before you decide.

Step 1 · choose a vendor

In one of our camps? Your practice exams come with the tuition — they are on your study page already.

Project Management & Agile · Foundational

Firm Fixed Price Contract (FFP)

Contract in which the price is set and not subject to change unless scope changes.

Definition

The seller bears cost overrun risk. It is the most common contract type and favored by buyers when scope is well defined. Variants include fixed price incentive fee (FPIF) and fixed price with economic price adjustment (FP-EPA).

Example

A vendor agrees to deliver a website for $80,000 regardless of actual cost.

Exam tip

FFP = lowest risk for buyer.

Related terms