An example illustrating a cost plus fixed fee contract is a software development project where the client and the development team agree upon a predetermined cost for delivering specific features or a defined product. In this scenario, the client pays the agreed-upon amount upon successful completion of the project, regardless of the actual time, effort, or resources expended by the development team. A cost-plus fixed fee contract example is when a development partner provides clients with budgetary predictability but might pose challenges when accommodating changes or unforeseen requirements during the project's execution.