20092010 Peter Stevens redistribution allowed under Creative Commons ndncsa license 25 10 Contracts for Your Next Agile Project You are the customer you are the salesman you are the project leader ID: 212192
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10 Contracts for Your Next Agile Project
© 2009-2010 Peter Stevensredistribution allowed under Creative Commons nd-nc-sa license 2.5Slide2
10 Contracts for Your Next Agile ProjectSlide3
You are the customer, you are the salesman, you are the project leader.
How do you contract for agile software development services?Photo © Aramanda - FotoliaSlide4
There is too much at stake
to work with just a verbal agreement. Photo © Julián Rovagnati – FotoliaPhoto © Diego Bonifacio – FotoliaPhoto courtesy of Rainer Ebert @ FlickrSlide5
Use the contract to help you achieve your project goals
. Photo © Julián Rovagnati – FotoliaSlide6
purpose and contents of a contract
criteria for evaluating agile contractscontracting alternatives for agile development projects. Navigating Agile ContractsSlide7
Contracts set the basic playing rules for the project.
A contract apportions risk and reflects trust between the partiesThe wrong playing rules can be detrimental to the success of the projectWhat is the purpose of a contract?Slide8
Contracts set the basic playing rules for the project.
Photo courtesy of wjarrettc @ flickr Slide9
A contract apportions risk
and reflects trust between the parties. Photo courtesy of Cold Cut @ flickrSlide10
The wrong playing rules can be detrimental to the success of the project.
Photo courtesy of Daquella manera @ flickrSlide11
What information should be included in a contract?
How do you compare the contract forms?What are the contract alternatives that are suitable for agile development projects?How is a contract for Agile Development different?Slide12
What information should a contract include?
IANALObjectives of the project Definition of the deliverablesAn outline of the project structure Key Personnel Payment and billing, including any bonus and penalty clausesEarly and normal termination“Legal Details”What else?Slide13
Do you need to include the scope in the contract?
… and if so, how should you specify it?Slide14
What is the Sprint Contract?
QualityScopeCostTimeSlide15
A Classical Approach to Slippage
ABCDQSlide16
A Classical Approach to Slippage
ABCDQQ?ABCDSlide17
An Agile Approach to Slippage
ABCDQQABSlide18
Q
An Agile Approach to SlippageABCDQQABCEABSlide19
How to compare contact forms
Basic StructureRisk & RewardScope ChangesCustomer RelationshipSlide20
Variable Scope
Time and MaterialsTime and Materials with Variable Scope and Cost CeilingFixed ScopeFixed Price / Fixed ScopeTime and Materials with Fixed Scope and a Cost CeilingVariationsPhased DevelopmentFixed ProfitBonus / Penalty Clauses“Money for Nothing, Changes for Free”Joint Ventures10 Contract FormsSlide21
Time and Materials
Effort$$$profitrevenueSlide22
Time and Materials with Variable Scope and Cost Ceiling
Effort$$$Work Stops latest at Point of Maximum Profitrevenue
profitSlide23
Fixed Price, Fixed Scope
or “Let’s play the change-request game!”Effort$$$Revenue is constant, Regardless effort applied or delivery daterevenue
profitSlide24
Time and Materials with Fixed Scope and a Cost Ceiling
“Heads I win, tails you lose!”Effort$$$Work stops when all requirements have been met
revenue
profitSlide25
Phased Development
Effort$$$Project delivers functionality ~quarterlyBudget & Priorities adjusted quarterly as wellrevenueprofitSlide26
Fixed Profit
Effort$$$After target completion date,Supplier works at costrevenue
profitSlide27
Bonus / Penalty Clauses
Effort$$$Agreed target daterevenueprofit
Bonus
PenaltySlide28
“Money for Nothing, Changes for Free”
Business value achieved, so work stopsEffort
$$$
Estimate to do “everything”
revenue
profit
“Missing Profit”
ROISlide29
Joint Ventures
Photo courtesy of hydropeek @ flickrSlide30
Recommendations and Questions (
?)Photo © leonardo viti - fotoliaSlide31
Further Reading
Peter Stevens10 Contracts for your next agile projectEnglish http://tinyurl.com/d3mrecFrench http://tinyurl.com/yajqtkzContracting for Agile Projectshttp://tinyurl.com/dbxkj4http://scrum-breakfast.comMary & Tom PoppendieckLean Software Development: An Agile ToolkitJeff Sutherland Money for Nothinghttp://tinyurl.com/cuddvnSlide32
Bon Voyage!
Peter Stevenspeter@sierra-charlie.com+41 44 586 6450