Gartner Research

When and How to Use a Fixed-Price Contract

Published: 25 June 2008

ID: G00158185

Analyst(s): Richard Ni


It is important for organizations to avoid potential pitfalls when entering into fixed-price agreements with vendors for IT services.

Table Of Contents
  • Overview
  • Definition of a Fixed-Price Contract
  • Why should customers enter into fixed-price contracts?
  • What are the risks for customers when entering into fixed-price contracts?
  • What steps should customers take to minimize risk when entering into a fixed-price contract?
  • Conclusions
  • Tactical Guidelines

©2021 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Purchase this Document

To purchase this document, you will need to register or sign in above

Become a client

Learn how to access this content as a Gartner client.