Fixed price is a model suitable for small and medium-scale projects with all the necessary documentation, specification, and requirements. This approach works best for the client when project requirements are firmly set and are not going to be changed. It is commonly used for short-term projects like MVP or PoC products or long-term projects with a firm plan and necessary specifications that won’t be changed in the future. This cooperation model includes strict deadlines for project implementation.
Pros
All necessary documents, like project requirements and specifications, are ready. It ensures the likelihood of getting the exact product that the client needs.
The milestones, workflow plan, and deadlines are approved.
As all requirements are approved in advance, it is possible for the vendor team to estimate the budget and amount of money accurately.
This approach doesn’t take the client’s time or management efforts as the budget and deadlines were agreed.
Cons
Not all requirements may be predicted correctly. Sometimes some changes and re-estimation are needed. However, this approach is not designed for changes.
As a tech team works with submitted documentation, there is a risk that some details were missed. In this way, the product can be different from what the client needs to receive.