FIXED COST ON PROJECT BASIS

Fixed Cost

The Fixed Cost Model is ideal for well defined projects of low to medium complexity. The model requires well-defined technical requirements in the form of software specification documents. This allows team to know project-related risks beforehand. The projects are typically neither changed nor extended during implementation. Fixed cost model requires some support from the customer in the form of timely and relevant feedback and decisions.

Benefits:

  • Low risks and predictability of the project outcomes
    Quality and quantity of efforts spent to specify the project requirements.
  • It allows the buyer to set in advance an exact budget.
  • It typically limits the number of changes that occur during the implementation phase of the project.
  • The project will be straightforward with little or no external dependencies.

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