Agile Contracts

Question 1

DSDM Contract

Answer 1

Focuses on work being “fit for business purpose” and passing tests, rather than matching a specification. Used primarily in UK and Europe

Question 2

Money for nothing and change for free

Answer 2

Sutherland suggests including early termination options and proposes a model trhat allows flexibility in making changes. Starts with a standard fixed proce contract that includes time and material for the addl work then inserts “change for free” clause. The “change for free” and “money for nothing” clause only valid if the customer plays a part in the iterations and project

Question 3

Graduated Fixed price contract

Answer 3

Thorup/Jensen: Both parties share some of the risk and reward associated with the schedule variance by using different hourly rates based on early, on time or late delivery

Question 4

Fixed price work package

Answer 4

Mitigate the risks of underestimating or overestimating a chunk of work by reducing the scope and costs in the work being estimated. Allows the customer to reprioritize the remaining work based on evolving costs. Gives the supplier the ability to update their costs as new details emerge, removing the need for the supplier to build excess contingency funds into project cost

Question 5

Customized contracts

Question 6

Team augmentation

Answer 6

allows businesses to flex teams up and down as needed, and often offer much faster and most flexible onboarding processes