Fixed-Price Model. This cooperation model the ideal choice when a project has its specifications explicitly stated. During the preparation of specifications, the needs of the client are carefully analysed. This is to assess the cost of the project up to the date of completion and to complete a detailed project plan.
Advantages of the fixed-price model:
- Projected costs
- Clear deadlines
- Clear scopes of work
Shortcomings of the fixed-price model:
- Specific requirements must be submitted before the start of the project
- Resources must be managed by a project manager, they may vary depending on conditions
- Additional costs are not paid from the project budget funds
What this model is the best for?
This model is used when the client does not wish to go into the technical details and plans of the project, and would like to get a ready-made solution for the funds provided and within a specified period of time.
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