Agile Contracts

Traditional fixed price, fixed outcome contracts don’t fare well in an Agile world. The traditional approach puts the emphasis on getting the details right up front. Agile Contracts acknowledge that it isn’t possible to know everything at the start. They turn the procurement process into an exploration between the customer and the vendor.

Some characteristics of effective Agile Contracts:

• Iterative Delivery vs Everything all at Once
• Detailed Requirements aren’t included in the Scope
• Build in feedback loops (hint: Sprint Review)
• Flexible Pricing
• Allows for Early Termination

Consider buying Sprints (or timeblocks), in which case changes don’t come with additional costs.