FIXED SUB Sample Clauses

The "Fixed Sub" clause establishes a predetermined, unchangeable amount or rate for a subcontractor's compensation or a specific portion of work within a contract. In practice, this means that regardless of actual costs incurred or fluctuations in project scope, the subcontractor will be paid the agreed fixed sum for their services or deliverables. This clause is commonly used in construction or service agreements to provide cost certainty and simplify payment processes. Its core function is to allocate financial risk and ensure budget predictability for both parties by preventing disputes over variable costs or additional charges.