Agile contracts

transcript

Agile Contracts

Andris BarissVladimir Tarasow

customersupplier

negotiations

contract

Risk is the potential that a chosen action or activity, including the choice of inaction, will lead to a loss.

Wikipedia

Risk is the effect of uncertainty on objectives.

ISO 31000 (2009) / ISO Guide 73:2002

Risks should be:● identified — severity and impact● classified — people, process or

technology● analyzed — prioritization● planned, tracked and etc.

risks are uncertain

When we estimate a project we base it on our idea of scope.

But actually,it's the customer

who is in control of scope.

requirementsare uncertain

agile contracts

Capped Time & Material

Traits:● Fixed time● Fixed budget● Scope can be altered● Requirements are stable

Pros:● Supplier gets full coverage of its

expenses.● Customer benefits from the limit to the

total exposure.● Both parties interested in delivering high

value functionality as early as possible.

Cons:● Requirements should remain stable.● Both parties must work closely together

to identify needs, wishes and priorities from the very beginning.

Incremental Delivery

Traits:● Regular inspection points.● Can be stopped after some point.● Requirements can be changed wildly.● Good for building prototypes.

Pros:● Natural for the Agile Teams.● Supplier gets full coverage of its

expenses.● Customer can stop the project after the

inspection point to save the budget.

Cons:● Customer should be familiar with

incremental development.● Requires a certain level of trust between

supplier and customer.● Uncertain future for the supplier.

Cost Targeted

Traits:● Fixed scope.● Better for long-term relationships.● Share risk fairly between Customer and

Supplier.● Align goals by giving both parties an

incentive to minimise scope.

Cost Targeted

More gain, more pain.

Cost Targeted

Pros:● Both sides benefit of savings.● Both sides share the penalties.● Gives certainty about the maximum

price.

Cost Targeted

Cons:● It's very hard to agree on a realistic final

price of the product.● Both organizations must truly understand

the model.

time to practice

Every FridayI like to enjoy

tasty cocktails.

● 5 mins to discuss what you will do● 10 mins to ask me questions● 10 mins to build a proposal

Vladimir Tarasow

About: http://about.me/netratE-mail: netrat@netrat.eu

Andris Bariss

About: lv.linkedin.com/in/andrisbarissE-mail: andris.bariss@gmail.com

Thank You!

Please, leave feedback!

http://spkr8.com/t/21031

Materials used in the presentation:● Wikipedia: www.wikipedia.org● Agile Contracts collection by Alistair Cockburn: alistair.cockburn.

us/Agile+contracts● 'Minimal Marketable Features - MMFs Explained' (www.netobjectives.com)● 'Target Cost Contracts' by John Rusk (www.agilekiwi.

com/estimationandpricing/target-cost-contracts)● Photo from Wikimedia by Properpilot● Photo from Wikimedia by Nik Frey● The reproduction 'Saint Wolfgang and the devil' by Michael Pacher via

GNU Free Documentation License● Illustrations by Arina Noviani (arinanoviani.deviantart.com)● Illustrations by Vladimir Tarasow

Credits

This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License. To view a copy of this

license, visit http://creativecommons.org/licenses/by-nc-sa/3.0/.

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