Agile Contracts: Creating and Managing Successful Projects with Scrum

Agile Contracts: Creating and Managing Successful Projects with Scrum

Andreas Opelt, Boris Gloger, Wolfgang Pfarl, Ralf Mittermayr

Language: English

Pages: 304

ISBN: 1118630947

Format: PDF / Kindle (mobi) / ePub


A methodologically sophisticated, comprehensive approach to applying the Agile fixed-price contract to IT projects while maximizing customer and supplier relationships

"Interesting and necessary for IT managers and IT lawyers."
—Walter J. Jaburek, Dipl.-Ing., Dr. iur., Dr. techn.

Approximately 50 percent of software developers use Scrum, an iterative and incremental development method for managing software projects and product or application development, in their work. The benefit of Scrum and other Agile methods is that they can address shifts in a large project that traditional managerial methods cannot.

Written by pioneers and leaders in the field of Agile and Scrum, Agile Contracts is the only book dedicated exclusively to the legal, procurement, and project management considerations of Agile contracts. Providing templates, a toolbox, and examples of Agile fixed-price contracts, the book presents an alternative option to fixed-price, time-based, and supply-based contracts—reducing the risk for both the supplier and the customer with a contract that offers the possibility of flux and flexible scenarios as a project progresses.

Agile Contracts features in-depth chapter coverage of:

  • The Agile Manifesto of 2001
  • Agility from the perspective of procurement and the software provider
  • The problems with traditional fixed-price contracts and time material contracts
  • What the Agile fixed-price contract is and how it is set up
  • Tendering based on the Agile fixed-price contract
  • How to negotiate an Agile fixed-price contract
  • Special guidelines for the legal framework of an Agile fixed-price contract
  • Adaptable Scope System
  • The Black Swan scenario
  • Contracts and procedures for the featured methodologies

Especially applicable within highly structured business organizations, Agile Contracts is a must-read for project managers, agile practitioners, procurement representatives, and IT lawyers.

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by all the Scrum team members. It is, in fact, important that all team members (i.e., software developers, database engineers, testers, business analysts, and designers) estimate the backlog together. In an agile software development project, that usually involves no more than 10 team members. If the team is any larger, you should split it up and carry out the estimation in two teams. It is crucial that the product owner be present, but he or she has no right to estimate. Planning poker is played

is being played, nobody announces his or her Agility from the Perspective of Procurement    23 selection. Only when all team members have decided are the cards revealed (simultaneously). Almost always, the estimates of individual team members differ. This is good, as it gives each person the opportunity to learn something. The two team members with the highest and lowest estimates now explain how they got to their respective numbers. This explanation is only for the exchange of information,

have just recently had a workshop with a big insurance company which had started to integrate and harmonize to a standardized software solution. Everything seemed very clear in the beginning, but now, many years later, no output was produced, as the methodology selected was not agile and a suitable contract did not give clear transparancy and minimization of the risk of stranded investments. Currently, this company is changing its delivery model and contractual processes to agile, to be aligned

because it is too expensive to negotiate. Table 8.4 shows the details and hence also that the agile fixed-price contract is anything but difficult to negotiate. It is clear that it is something new and for this reason alone presents a particular challenge for the organization and procurement. A traditional role perception and traditional processes need to evolve for this type of contract. 8.1.5  Estimate Security Estimate security is the security that both sides will position the actual project

closer to the client and verifying the assumptions. After all, unlike a traditional fixedprice contract, there is less danger that the client will draw incorrect conclusions. +++ The reference user stories are described and estimated in detail. Maximum transparency is ensured through joint discussions in the cooperation workshop on the work and assumptions involved. This transparency is maintained over the course of the project (open books). It is recommended that the costs be limited simply to

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