A fixed-price contract sets one agreed price for a defined scope of work, so the provider carries the risk if the work takes longer than planned. It works best when requirements are clear, stable and testable before work begins.
The definition of done is a shared checklist of conditions every piece of work must meet before a team calls it complete. It makes "finished" mean the same thing for everyone.
Fixed price and time and materials split risk differently: one agreed price for a defined scope, or billing for the hours and costs actually spent. Under fixed price the provider absorbs overruns; under time and materials the client does.
A rate card is a provider's list of agreed prices by role, seniority level or service, used to quote and bill work under a contract. In technology staffing it usually sets hourly, daily or monthly rates for each engineer profile.
A statement of work (SOW) is a document that defines one engagement: the work, deliverables, timeline, roles, fees and acceptance terms. It usually sits under a broader master services agreement.
Time and materials (T&M) is a contract model where the client pays for the actual time worked and costs incurred, at agreed rates. It replaces a fixed price for a fixed scope with flexible billing that follows the work as it changes.
Scope creep is the gradual, uncontrolled expansion of a project's requirements after work has started, without matching changes to time, budget or resources. It is a common reason projects run late.
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