Fixed Price Model
Untitled-1The Fixed Price Model is best suited to small and medium level projects with definite scope and clear specifications. The service providers decide cost for the deliverable and customers get advantages like fixed time, fixed price, low risk and guaranteed & on-time delivery of projects.
However, it is very useful to have clearly defined scope of requirements and specifications which in return gives accurate delivery timings, zero discrepancies and stringent cost.So the emphasis in this model is on TIME and MONEY. You as a customer know how much it is going to cost and how soon are you going to get the deliverable. Predictability and assurance is the hallmark of this model.
How It Works:

In this model, since the scope of work is clear from the beginning, we divide the whole project in to measurable project milestones and payment is taken on milestone basis. Client reviews the progress at every milestone, provides feedback, and releases the payment and this cycle continues until the project is completed as per client satisfaction. Though the scope is fixed, client can request to accommodate an out of scope request or item for an extra cost.