Time & Materials to Fixed-Price Conversion Amendment Template

This Time & Materials to Fixed-Price Conversion Amendment is made on [Date] by and between:

Party 1: [Full Legal Name]
Address: [Address]

Party 2: [Full Legal Name]
Address: [Address]

1. Original Agreement

This Amendment relates to the following original agreement:

Agreement Title: [Agreement Title]
Original Agreement Date: [Date]
Project Name or Reference: [Project Name or Number]

The parties entered into the original agreement on a time and materials basis and now wish to amend the pricing terms as stated below.

2. Effective Date of Conversion

The conversion from time and materials pricing to fixed-price pricing shall become effective on:

[Effective Date]

All work performed before this date shall be handled under the original time and materials pricing terms unless otherwise stated in this Amendment.

3. Fixed-Price Scope

Beginning on the effective date above, the following work shall be covered by the fixed-price arrangement:

[Describe the work, deliverables, milestone, project phase, or remaining scope covered by the fixed price]

Any work outside the scope described above shall be handled:

☐ under a separate written change order
☐ under separate pricing agreed in writing
☐ as follows: [Describe]

4. Fixed Price

The parties agree that the fixed price for the work described in this Amendment shall be:

[$Amount]

This fixed price:

☐ includes all labor, materials, equipment, and ordinary project costs for the covered scope
☐ excludes the following items: [Describe]
☐ is subject to the following assumptions or limits: [Describe]

5. Prior Time and Materials Charges

The parties agree that charges incurred before the effective date of conversion shall be handled as follows:

☐ billed and paid under the original time and materials terms
☐ included in the fixed price stated above
☐ partially included as follows: [Describe]
☐ otherwise handled as follows: [Describe]

Outstanding invoices or pending charges, if any:

[Insert details]

6. Payment Terms

The fixed price shall be paid as follows:

☐ lump sum payment of [$Amount] due on [Date]
☐ installment payments as follows: [Describe]
☐ milestone payments as follows: [Describe]
☐ other: [Describe]

Late payment terms, if any:

[Insert terms or write “None”]

7. Changes After Conversion

After the effective date of this Amendment, any additional work, revised scope, delay impact, or owner-requested change affecting the fixed-price work must be approved in writing before extra compensation or schedule adjustment is required, unless the original agreement states otherwise.

Change requests shall be handled as follows:

[Describe change-order process]

8. Schedule and Performance

The parties agree that the work covered by this Amendment shall be completed as follows:

Start Date, if applicable: [Date]
Completion Date or Milestone Date: [Date]

Additional schedule terms, if any:

[Insert terms]

9. No Other Changes

Except as expressly modified by this Amendment, all other terms of the original agreement remain unchanged and in full force and effect.

10. Entire Amendment

This Amendment contains the full understanding of the parties regarding the conversion of pricing from time and materials to fixed price for the covered work and replaces prior discussions on that subject unless otherwise stated in writing.

11. Signatures

Party 1 Signature: __________________________
Name: [Full Name]
Title: [Title]
Date: [Date]

Party 2 Signature: __________________________
Name: [Full Name]
Title: [Title]
Date: [Date]