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Project Management & Agile · Advanced

Fixed Price with Economic Price Adjustment (FP-EPA)

Fixed-price contract allowing predefined adjustments for changing conditions such as inflation or commodity costs.

Definition

Used for multi-year contracts where economic conditions may change, with adjustments tied to a published index.

Example

A five-year support contract adjusts annually by the consumer price index.

Exam tip

Choose FP-EPA for long-duration contracts exposed to inflation.

Related terms