Document background
The Cost Fixed Fee Contract is a fundamental commercial agreement used in Australian business transactions where a contractor agrees to perform specified work or services for a fixed, predetermined fee. This contract type is particularly suitable when the scope of work can be clearly defined upfront and the principal wants price certainty. It's commonly used in construction, professional services, and project-based industries where the contractor bears the risk of cost overruns but benefits from cost savings. The document incorporates key provisions required under Australian law, including consumer protection requirements, security of payment provisions, and fair contract terms as mandated by the Competition and Consumer Act 2010 and related legislation. It provides comprehensive coverage of payment terms, scope variations, quality requirements, and risk allocation between parties.
