Agile Contracts

Craig Larman
v. 3

www.craiglarman.com
Copyright © 2013 Craig Larman, All rights reserved
May not be reproduced or redistributed without written consent of the author.

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Copyright (c) 2013, Craig Larman. All rights reserved.

2 Craig Larman
 background...

www.craiglarman.com
focus on (1) large-scale embedded systems, and (2) large-scale financial systems ...

Scaling Lean & Agile

Development
Thinking and Organizational Tools
for Large-Scale Scrum

Craig Larman
Bas Vodde

4
 serve as chief scientist @ Valtech
helped create “agile offshore”
lived in Bengaluru
5

lead coach of lean development

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coach/consultant for large-scale &
multisite & “offshore” Scrum

...

Scaling Lean & Agile

Development
Thinking and Organizational Tools
for Large-Scale Scrum

Craig Larman
Bas Vodde

8
9
www.craiglarman.com

11

Lawyers

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 Try...Lawyers study agile, iterative, &
systems-thinking concepts

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Try...Lawyers study problems arising from

silo mentality and lack of systems thinking

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Try...Appreciate a traditional lawyer’s point
of view

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Try...Lawyers study the impact of

potentially deployable two-week
increments on assumptions and contracts

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Try...Lawyers study how agility reduces risk
and exposure

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Try...Heighten lawyer sensitivity to software

project complexity by analogies to legal
work

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 Avoid...Incentives and penalties

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Avoid...“Quality Management Plan” and

“Deliverables List”

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 Try...Collaborate early and often with
lawyers

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Try...Lawyers independently write the

project vision and & goal, and then receive
feedback

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Pricing Models

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T&M variations:

capped T&M per Sprint

capped T&M per Project
capped T&M, with adjustment

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 fixed price per Sprint (unit of time)

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fixed price per unit of effort (relative effort

points or “story points”, ...)

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fixed price per unit of output (function
point, use-case point, ...)

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price relative to value impact (e.g., cost

savings, revenue generating)

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 pay per use

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Shared Pain/
Gain Pricing
Models
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 target-cost

any other hybrid model that shares the

savings or extra costs

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Contract Models

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 fixed-price fixed-scope

how to do with Scrum?

how to add flexibility?

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capped-price variable-scope

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 fixed-price variable-scope

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Capped-Price, Partial-Fixed-Scope

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Try...Variable-price variable-scope
progressive contracts

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Try...Multi-phase variable-model
frameworks

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 www.craiglarman.com

39 Craig Larman