Which method of project delivery utilizes fixed-price agreements?

In project delivery methods, fixed-price agreements are typically found in the Design-Bid-Build approach. This method involves three distinct phases—design, bidding, and construction. Once the design phase is complete and the project is bid out to contractors, the selected contractor agrees to a fixed price for completing the construction according to the specified design.

The fixed-price agreement is beneficial because it promotes cost certainty for the client, as they know exactly what the construction will cost ahead of time. This contrasts with methods like cost-plus contracts, where the contractor is paid for their actual costs plus a fee, and thus does not operate under a fixed price.

In Design-Build, there is also a single contract covering both design and construction, which may or may not involve fixed pricing, depending on the particular arrangements made. Given that Design-Bid-Build is specifically focused on fixed-price agreements post-design phase and competitive bidding process, it is the correct choice in this context.