Final answer:
A fixed-price contract is a type of contract used in business agreements where the price for goods or services is set and agreed upon in advance.
Step-by-step explanation:
A fixed-price contract is a type of contract used in business agreements where the price for goods or services is set and agreed upon in advance. In the context of Franklin Construction, it means that Franklin Construction would agree to complete a project for a fixed amount of money, regardless of any changes in costs or circumstances that may arise during the project.
This type of contract provides certainty for both Franklin Construction and the client, as it eliminates the risk of unexpected cost increases or delays that could arise with other types of contracts. However, it also means that Franklin Construction takes on the risk if the actual costs of the project end up being higher than anticipated.