How to set up fixed price projects

Priced projects in construction refer to projects where the total cost is agreed upon before work begins, based on detailed estimates of labor, materials, and overhead. This fixed-price contract stipulates a set amount the client will pay for the completion of the project, regardless of actual costs incurred. This arrangement benefits clients by providing budget certainty and shifts the risk of cost overruns to the contractor. For contractors, priced projects require precise estimating and efficient management to ensure profitability while delivering the project within the agreed-upon budget and timeline. This approach promotes clear financial expectations and accountability from the outset.