The fixed price model means that you and the software development vendor you're partnering with have agreed on the scope, the deadline, and, as the name suggests, the price of the project. This is the critical part: the model doesn't allow the product requirements to change much.
The dedicated team and the fixed price models have a crucial trait in common: when you sign up for either of them, you know when to pay, whom, and how much. Since the team, the scope, and the deadlines are agreed upon in advance, there will be no budget-related surprises.
Go for the fixed price model if:
- your project has extensive specs and a clear goal or results
- all the procedures are known and negotiated beforehand
- the deadline is set in stone
- you don't feel the need to control everything
- you aren't planning to change anything about the project in the process
Largest advantage: You can plan your budget ahead.
Largest disadvantage: Less flexibility in terms of the project scope.