Tuesday, August 11, 2015

Agile for Fixed Price Contracts

We all know that Fixed Price contracts have many disadvantages:
- All requirements have to be detailed upfront to estimate properly
- Vendor usually pad estimates so it's more expensive and there is waste of resources.
- It puts vendor and client one against the other during the execution since vendor wants to reduce costs and client wants more for what was paid.
However, sometimes change the contract type is not an option. Although the disadvantages or how much we want to change that, many times the contract has to be a fixed price for external reasons (it’s a government contract, very old fashioned company, etc.). So, here is a list of alternatives for implementing agile practices in that environment and get the most of it.