What Does FP Stand For?

FP stands for Fixed Price Contract

FP, or Fixed Price Contract, is a type of contractual agreement where the payment amount is set in advance and does not change regardless of the actual costs incurred during the project. This structure provides cost certainty for both the client and the contractor, as it allows for clear budgeting and financial planning. However, it also places the risk of cost overruns on the contractor, incentivizing efficient project management and timely delivery. Fixed Price Contracts are commonly used in construction, IT, and various service-oriented industries.

Other Meanings for FP