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The 10 contracts for your next Agile software project

Which contract form is the right one for your project? It depends. In this chapter we examine each of the widely used contract forms and evaluate them in the context of the criteria we set out in Chapter 5, What is the purpose of a contract?

Photo courtesy of hydropeek@flickr CC-BY-2.0

  1. The Sprint Contract - Not really a contract, but a useful metaphor to describe the agreement within the Scrum Team during the sprint.
  2. Fixed-Price, Fixed-Scope - All the product decisions are taken up front. The winner is the master of the change request game.
  3. Time and Materials (T&M) – Risk is owned by the customer. So are the costs.
  4. T&M with Fixed Scope and Cost Ceiling – The worst of both worlds from the supplier’s point of view.
  5. T&M with Variable Scope & Cost Ceiling – A pragmatic approach to outsourced product development.
  6. Phased Development – How venture capitalists work with start-ups.
  7. Bonus and Penalty Clauses – Looks good on paper, works better with things you can build out of concrete. 
  8. Fixed Profit – Share the risk and incentivizes both parties to come to a conclusion.
  9. Money for Nothing, Changes for Free” – Encourages both customer and supplier to focus on value.
  10. Joint Ventures – A marriage made in heaven…? Or hell?!

The text is excerpted from Ten Contracts For Your Next Agile Project, by Peter Stevens. 
You can get the whole book now, or you can read it a chapter at a time as I publish it here under the label ten contracts. To download the e-book or pre-order the physical book visit


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