On the project’s objective and the desired outcome, the client and contractor concur. It might not be possible to outline every stage of the process. They settle on hourly pay for both the contractor’s employees and subcontractors within that framework. Along with a markup for material pricing, the contractor also defines the materials that will be used.

The vendor will agree to pay a predetermined sum of money for a particular project with prearranged deliverables under the fixed bid approach. The fixed bid approach is typically the best option where a corporation has something predetermined in their project, such as established data, a pre-agreed project scope, or a set budget.