In a fixed-price contract, the customer and the contractor agree on a price for the proposed work. The price remains fixed unless the customer and the contractor agree on changes. This type of contract provides low risk for the customer, because the customer will not pay more than the fixed price, regardless of how much the project actually costs the contractor. However, a fixed-price contract is high risk for the contractor, because if the cost of completing the project is more than originally planned, the contractor will make a lower profit than anticipated or may even lose money.