The Fixed Budget Model is an ideal variant in case if a client determined the specifications of his project clearly. At this rate we analyze client's requirements in order to estimate the cost of the project, its delivery date and workout a detailed plan of project completion.
- Fixed budget: buyer has predictability of his costs.
- Well-defined time limits.
- Exact development plan and technical documentation.
- Requirements must be defined before the project starts.
- Resources are managed by the project manager and they may vary depending on the conditions.
- Additional requests are payed over budget.
Such a model is used when the customer does not want to delve into the technical details of the project and plans to get ready-made solution within the determined project budget and timeline.
In case if it is hard to predict the precise cost, time limits, efforts to be spent and the development process needs control and improvement at any stage, there is a certain risk for the client and it is desirable to choose either Time & Material or Dedicated Team Business Model.