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!

~ by mdavey on March 18, 2014.

One Response to “Agile Fixed-Price Contracts”

  1. Take a look at Mike Cohn’s Advanced Agile Planning slides – http://www.slideshare.net/mikecohn/advanced-agile-planning
    re fixed date, fixed scope.

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