Along with freedom to plan and set an exact budget, client also gets advantage of low risk and gives clarity about each milestone. This model guarantees a fixed budget for the project, regardless of the time and expense. The main advantage of a fixed price model is that it allows the client to plan and set an exact budget.

However, our experience says that this model is usually taken up for short-term projects. As this model needs to have all fixed requirements, which means, in case of change of requirements during the course of development, cost will be subject to a new estimation. 

In case of short-term projects, you can easily hand over all specifications and in such scenario this model works the best.