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Study Fixed Budget Method lecture notes PDF with project management definitions and explanation to study What is Fixed Budget Method?. Study fixed budget method explanation with project management terms to review project management course for online MBA programs.

Fixed Budget Method Definition:

Fixed Budget Method Notes:

When the needs of procurement are identified, the suitable sources must be selected. First, the needs are prioritized, then the appropriate selection method is decided. Different source selection methods can be used e.g. least cost, quality based, sole source etc. One of the method is fixed budget method. Fixed budget method involves providing the specific available budget to the potential sellers using request for proposal who are invited to submit proposals and quotations. The seller proposing the best technical performance within the budget is selected. As the budget is limited, the interested sellers adjust their scope of work and quality according to it. Fixed budget method is used in the cases of defined scope and statement of work.

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