This was attributed to deficient project management by the company, but also in part to the deficiencies in the terms of "fixed price contracts".

Final cost may be less than a fixed price contract because contractors do not have to inflate the price to cover their risk.

A blanket order is set at a fixed price contract for a period of time.

This is a term used in project management when managing specific fixed price contracts.

They agreed to a fixed price contract for the work in the south section, which eventually cost them $8 million in cost overruns.

Fixed price contracts with external parties limit this risk.

There is no fixed price contract for oil.

It had signed a "fixed price" contract to produce the plane, and now costs were running way over budget, signaling big losses.

"But this will certainly help us when it comes time for our negotiations for the next round of price contracts."

Sliding-scale price contracts achieve a similar effect, although the terms are stated differently.