You get a product or a service of a known price in a known timeframe.
Fixed Price model works best when the project specifications and the deliverables are clearly defined and known to you. You have a budget to work with, the project schedules are adhered to, and the payment schedules are linked to intermediate milestones. Fixed Price is a low risk model, that is best suited for small projects, and where post-project support is minimal. The key to success of fixed-price contract is perfect planning. When the project is badly planned, there is no possibility for any future changes. You are not being offered an hourly rate you can control but the outcome which has been clearly articulated before. Low flexibility can frustrate you when there is a need of urgent change, however potential variations need to be negotiated and will modify the offer and pricing.
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