Q: Time and materials contracts are usually paid monthly, based on hours worked. What is a fixed contract?
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Q: Time and materials contracts often pay on a monthly basis according to the number of hours done. A fixed contract: what is it?
- A contract paid for a certain amount of time
- A contract paid internally to team members
- A contract paid when certain milestones are reached
- A contract paid to a specific vendor
Explanation: In a fixed contract, the conditions of payment are not contingent on the number of hours worked or the amount of time spent on the project; rather, they are contingent on the accomplishment of predefined project milestones or the fulfillment of certain tasks. This gives all parties participating in the contract with clarity and predictability on the expenses that are associated with the deal.
