---
title: "What Is Fixed-price contract? Building Glossary"
description: "A fixed-price contract sets one total price for a defined scope of work before construction starts. Plain-English building glossary from Halo Homes, Tampa Bay."
url: https://build813.multisites.ai/glossary/fixed-price-contract
publisher: Halo Homes
phone: +1-813-956-1972
quote: https://build813.multisites.ai/contact
---

![Aerial view of a two-story white home with a pool on a canal](https://build813.multisites.ai/_astro/aerial-canal.DUcdGsF4_Z2mBUqP.avif)

# Fixed-price contract

A fixed-price contract sets one total price for a defined scope of work before construction starts.

A fixed-price contract, also called a fixed bid, names one total for a defined scope. The scope is the key. Anything outside it, or any item left open, can still change the price.

The National Association of Home Builders describes a fixed bid as a bid that tells you exactly how much you will pay for a finished home by a set date. Open items are often covered by an [allowance](https://build813.multisites.ai/glossary/allowance), and later changes need a [change order](https://build813.multisites.ai/glossary/change-order). Compare it with a [cost-plus contract](https://build813.multisites.ai/glossary/cost-plus-contract). See [the cost to build a custom home in Tampa](https://build813.multisites.ai/cost-to-build-custom-home-tampa) for how contracts affect budgets.

[Halo Homes can helpCustom home construction](https://build813.multisites.ai/services/custom-home-construction)

## Related terms

-   [Cost-plus contract](https://build813.multisites.ai/glossary/cost-plus-contract)
-   [Allowance](https://build813.multisites.ai/glossary/allowance)
-   [Change order](https://build813.multisites.ai/glossary/change-order)
-   [Construction loan](https://build813.multisites.ai/glossary/construction-loan)

## Sources

1.  [National Association of Home Builders: How Do Builders Charge for Their Services?](https://www.nahb.org/subsites/log-homes/buyers-guide/building-your-team-pages/how-do-builders-charge-for-their-services)

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## Start your home.

Tell Halo about your lot, your plans and your timing. A call or a short note is enough to begin.

[Start your home](https://build813.multisites.ai/contact)

Or call [(813) 956-1972](tel:+1-813-956-1972)