What does the term "stipulated price" refer to in the context of CCDC 14?

The term "stipulated price" in the context of CCDC 14 refers to a fixed price agreed upon for the project. This pricing model establishes a set, predetermined sum that the contractor and the owner agree to at the outset of the project, which encompasses the full scope of work as specified in the contract documents. A stipulated price provides clarity and predictability for both parties involved; the owner knows the total financial commitment while the contractor is assured of the payment for the services provided.

In a stipulated price arrangement, any changes or additional work that may arise during the project are typically addressed through change orders, which can adjust the overall price as needed but do not alter the original fixed price basis of the contract. This contrasts with models such as cost-plus contracts, where the final cost can fluctuate depending on actual expenditures, making the stipulated price a more straightforward approach for budgeting and financial planning.