The importance is on TIME and MONEY. You as a customer know how much it is going to cost and how shortly are you obtainable to obtain the deliverable. Preventability and guarantee is the hallmark of this model.
In this model you and Amar InfoTech (AI) agree to a fixed price and timelines for a project at the beginning of a project. This is a popular appointment model which clients feel comfortable dealing with as it gives them a financial plan and timeline that is fixed. AI has perfected this model and is proficient at delivering at high quality software in time and within financial plan.
The Fixed Price Model is best suitable to small and medium level projects with specific scope and understandable specifications of the projects. You can engage this model when everything about your project is apparent from the beginning of your project to its delivery and pay a fixed price as per the agreement.
AI recommends this model is ideal for customers who have detailed project specifications, timelines and budget.
You will provide a detailed specification document to AI. AI all along with you will review the stipulation and make sure that all assumptions, details are made explicit. AI will arrange an effort analysis and propose a fixed price and fixed time frame for the project execution. AI also will show up the scope of change and possible risks during the execution phase.
You and AI will enter to in an agreement that covers visual aspects, documentation, application design, testing, support period, change management, communication protocols, milestones, timelines and commercial details. The project is executed as per the agreement. In this model, for any change in scope at the later stage in the project execution, a prior approved upon fixed hourly rate is charged to the client.
This is a good model for all projects where the specifications of the project / product are clear and well predictable with all aspects of estimation and change management equally agreed upon. Since almost every particular project requires an individual approach and it is rather difficult to work out a detailed plan with fixed cost and deadline, we recommend a Dedicated Team Business Model or Time & Material Business Model.