How to Get a Job For Project Managers

Learn how to write resume and interview

Leadership for Project Managers

Learn how to lead and drive project success.

Project Management Bootcamp

From a beginner to project management professional.

Agile Project Management and SCRUM with AI

Learn to run Scrum and Agile with AI.

Firm Fixed Price Contract (FFP)

A fixed-price agreement where the buyer pays a set amount stated in the contract, and that price does not change based on the seller's actual costs.

Key Points

  • Price is established up front and stays firm unless the scope is formally changed.
  • The seller carries most cost and performance risk; overruns are not billed to the buyer.
  • Best for well-defined, stable requirements where outcomes are clear.
  • Payments are often tied to milestones or deliverables, giving the buyer cost certainty.

Example

A company hires a contractor to renovate a lobby for a fixed total of $200,000 based on finalized drawings and specifications. Even if materials or labor cost more than expected, the contractor must complete the work for $200,000 unless the buyer approves a scope change.

PMP Example Question

A vendor reports higher-than-expected labor hours but cannot increase the invoice unless a change request is approved. Which contract type is most likely in place?

  1. Firm Fixed Price (FFP)
  2. Time and Material (T&M)
  3. Cost Plus Fixed Fee (CPFF)
  4. Cost Plus Incentive Fee (CPIF)

Correct Answer: A — Firm Fixed Price contract (fixed total price regardless of seller costs)

Explanation: In an FFP, the agreed price does not change due to the seller's actual costs; the seller absorbs overruns unless scope is formally changed.

Advanced Lean Six Sigma — Data-Driven Excellence

Solve complex problems, reduce variation, and improve performance with confidence. This course is designed for professionals who already know the basics and want to apply advanced Lean Six Sigma tools to real business challenges.

This is not abstract statistics or theory-heavy training. You’ll use Excel to perform real analysis, interpret results correctly, and apply tools like DMAIC, SIPOC, MSA, hypothesis testing, and regression without memorizing formulas or relying on expensive software.

You’ll learn how to measure baseline performance, analyze process capability, use control charts to maintain stability, and validate improvements using statistical evidence. Templates, worked examples, and structured walkthroughs help you apply each concept immediately.

Learn through a complete, real-world Lean Six Sigma project and develop the skills to lead data-driven improvements with credibility. If you’re ready to move beyond basics and make decisions backed by data, enroll now and take your Lean Six Sigma expertise to the next level.



Advance your Lean Six Sigma expertise!

HK School of Management helps you take Lean Six Sigma to the next level—without the overwhelm. Master advanced statistical tools, Excel-based analysis, and real-world improvement techniques to solve complex problems with confidence. For the price of lunch, you get practical templates, guided examples, and hands-on project experience you can use immediately at work. Backed by our 30-day money-back guarantee—zero risk, real impact.

Learn More