Agile Fixed-Price Contracts
Wiley has recently published an interested book on Agile Contracts. The book starts to get interesting in chapter 3. Essentially, an agile fixed-price contract defines a contractual framework within which time and costs are agreed prior to the contract starting, coupled with a structured approach to keep the scope within boundaries, leverage process to define and control the two parties.
Section 3.2.1 offers some insight into contract set-up. No surprises here, epic backlog, indicative fixed-price range, riskshare, scope/expense management and motivational/cooperative model
Business value/implementation risk (page 58) per feature, story is sensible – ROI
Scope governance process (page 67) offers some thoughts around security limit breaches for stories, and how they can be handled. Specifically, if the fixed price backlog says a story is 15 points, and the story look to exceed 15 points once both parties are into the fixed-price contract, both parties need a process to follow to either decide to continue with the larger story than estimated, or reduce the story to allow business ROI delivery.
“Sample of an Agile Fixed-Price Contract” chapter 4, offer what it says it does 🙂 Page 108, offer an interesting view on “Test Coverage” from a perspective of unit test coverage. I’d personally prefer to not only just look at unit test coverage, but the Acceptance Criteria/Test coverage as per my posting on Story Specification – Acceptance Criteria “Done”.
“The backlog is they key element of agile software development” – its shocking how many people still don’t get this simple sentence!