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A Fixed Price Model (FPM) both the client and the outsourcing company agree on completing the specified task within a specified time with budget fixed prior. FPM is best suited for short projects. Everything about budget, time, and work is mentioned clearly in the contract. The company wants to know details about your requirements before moving to the next step. A series of formal procedures such as a request for proposal and offer of implementation are worked prior to the onset of the actual software development process. Here is the step-wise guide on how actually the FMP works.