Unprecedented levels of change caused by the pace of innovation are stretching traditional contract models to the breaking point. As more organizations adopt Agile and Lean for the development of innovative/complex products and services, new contract models are needed that accommodate change. The Evolutionary Contract Model, based on Agile / Lean principles, offers promise as a possible solution.
The traditional Waterfall model fits nicely with the way companies buy things: requirements are drawn up, a supplier quotes a price, and everyone signs a legally binding agreement. Contracts written this way seldom offer the freedom to work using an Agile approach. This article examines four separate models available to suppliers and customers for establishing contracts for Agile work.
Fixed price contracts are evil - this is what can often be heard from agilists. On the other hand those contracts are reality which many agile teams have to face. But what if we try to tame it instead of fighting against it? How can a company execute this kind of contract using agile practices to achieve better results with lower risk? This article will try to answer those questions.