But what an 18 months: soaring prices for raw materials squeezed the company against some fixed-price contracts with its customers.

Instead, those fixed-price contracts, especially for offshore projects, have frequently lost money.

No one put a gun to their head to sign a fixed-price contract.

There is less incentive to be efficient compared to a fixed-price contract.

Second, the sculpture was made by the sculptor on a fixed-price contract.

If you know exactly what you want, a fixed-price contract may be your best bet.

But be aware that a contractor will pad a fixed-price contract slightly to cover complications.

Virtually every leading contractor has suffered large losses from fixed-price contracts in recent years, with the C-17 being one of the most troubled programs.

The decision will leave Medtronic as the sole supplier on the fixed-price contract.

The company had been working under a fixed-price contract that left it liable for most of the overruns, analysts said.