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Agile contracts : creating and managing successful projects with Scrum / Andreas Opelt, Boris Gloger, Wolfgang Pfarl, Ralf Mittermayr.

By: Contributor(s): Material type: TextSeries: Wiley series in systems engineering and managementPublisher: Hoboken, New Jersey : John Wiley & Sons Inc., [2013]Description: 1 online resourceContent type:
  • text
Media type:
  • computer
Carrier type:
  • online resource
ISBN:
  • 9781118640128
  • 1118640128
  • 9781118640104
  • 1118640101
  • 1118630947
  • 9781118630945
  • 9781118640067
  • 1118640063
Subject(s): Additional physical formats: Print version:: Agile contracts.DDC classification:
  • 005.1 23
LOC classification:
  • QA76.76.D47
Online resources:
Contents:
1. Agility: What Is That? -- 1.1. The Agile Manifesto of 2001 -- 1.2. Agile Development Based on Scrum -- 1.2.1. The Principles of Organization -- 1.2.2. The Process Model -- 1.2.3. Estimation in Scrum -- 1.3. Agility from the Perspective of Procurement -- 1.4. Agility from the Perspective of the Software Provider -- 1.5. The 12 Principles of Agile Software Development -- 1.6. Summary -- 2. The Missing Piece of the Puzzle -- 2.1. The Problems with Traditional Fixed-Price Contracts -- 2.2. The Problems with Time and Materials Contracts -- 2.3. Something New: The Agile Fixed-Price Contract -- 2.4. Summary -- 3. What Is an Agile Fixed-Price Contract? -- 3.1. Existing Approaches -- 3.2. The Agile Fixed-Price Contract -- 3.2.1. How Is an Agile Fixed-Price Contract Set Up? -- 3.3. Summary -- 4. Sample of an Agile Fixed-Price Contract -- 5. Tendering Based on an Agile Fixed-Price Contract -- 5.1. Appropriate Tender Content for an Agile Fixed-Price Contract -- 5.2. Requirements for Tendering and Selection -- 5.2.1. Competition -- 5.2.2. Comparability and Transparency -- 5.3. Tendering Steps with a Focus on Agile Fixed Price -- 5.3.1. Internal Goal Setting and Coordination -- 5.3.2. Preparation for the Invitation to Tender -- 5.3.3. Tender -- 5.3.4. Awarding of the Tender -- 5.3.5. Price Optimization Options -- 5.3.6. Project and Contract Management -- 5.3.7. Effort Inherent in the Tendering Process -- 5.4. Summary -- 6. Special Requirements for the Legal Framework of an Agile Fixed-Price Contract -- 6.1. Adaptable system for scope -- 6.2. Warranty and Damages -- 6.3. Schedule and Milestones -- 6.4. Path of Escalation -- 6.5. Obligations -- 6.6. Summary -- 7. Guideline for the Negotiation of an Agile Fixed-Price Contract -- 7.1. Objectives of the Client -- 7.2. Objectives of the Contractor -- 7.3. Objectives and Bonus Payouts of the People Involved -- 7.4. Strategy for the Project and the Negotiation -- 7.5. Tactics for the Negotiation -- 7.6. Price Determination -- 7.7. Conclusion of the Negotiation and Project Steering -- 7.8. Conclusions -- 8. Advantages and Disadvantages of Agile Fixed-Price Contracts -- 8.1. Detailed Analysis of the Pros and Cons -- 8.1.1. Budget Security -- 8.1.2. Requirement Flexibility -- 8.1.3. Detailed Requirements -- 8.1.4. Negotiating Costs -- 8.1.5. Estimate Security -- 8.1.6. Quality Risk -- 8.1.7. Price Elevation Tendency -- 8.1.8. Probability of Winning a Project Tender -- 8.1.9. Cost Risk -- 8.1.10. Security to Deliver a Project as a Whole -- 8.1.11. Acceptance Efforts -- 8.1.12. Pricing Transparency -- 8.1.13. Progress Transparency -- 8.1.14. Permanent Regulation -- 8.1.15. Securing the Investment -- 8.2. Summary and Overview -- 8.3. Conclusions -- 9. Toolbox for Agile Fixed-Price Contracts -- 9.1. Stimulating Interest Before the Negotiation -- 9.2. Identifying Issues of the Other Party -- 9.3. Establishing Common Language and Experiences -- 9.4. Feature Shoot-out -- 9.5. The Black Swan Scenario -- 9.6. Workshop on Contract Setup -- 9.7. Reports and Metrics -- 9.7.1. KISS Backlog View.
9.7.2. Focus: There Is a Single Goal! -- 10. Practical Examples -- 10.1. Example 1: Software Integration in a Migration Project -- 10.1.1. Initial Situation -- 10.1.2. Contract and Procedure for Traditional Methodologies -- 10.1.3. Contract and Procedure for Agile Methodologies -- 10.1.4. Contract for Example 1 -- 10.2. Example 2: Creating a Software Product -- 10.2.1. Initial Situation -- 10.2.2. Contract and Procedure for a Traditional Fixed-Price Contract -- 10.2.3. Contract and Procedure for a Time and Materials Contract -- 10.2.4. Contract and Procedure for an Agile Fixed-Price Contract -- 10.2.5. Conclusions1: Agility: What Is That? -- 1.1. The Agile Manifesto of 2001 -- 1.2. Agile Development Based on Scrum -- 1.2.1. The Principles of Organization -- 1.2.2. The Process Model -- 1.2.3. Estimation in Scrum -- 1.3. Agility from the Perspective of Procurement -- 1.4. Agility from the Perspective of the Software Provider -- 1.5. The 12 Principles of Agile Software Development -- 1.6. Summary -- 2. The Missing Piece of the Puzzle -- 2.1. The Problems with Traditional Fixed-Price Contracts -- 2.2. The Problems with Time and Materials Contracts -- 2.3. Something New: The Agile Fixed-Price Contract -- 2.4. Summary -- 3. What Is an Agile Fixed-Price Contract? -- 3.1. Existing Approaches -- 3.2. The Agile Fixed-Price Contract -- 3.2.1. How Is an Agile Fixed-Price Contract Set Up? -- 3.3. Summary -- 4. Sample of an Agile Fixed-Price Contract -- 5. Tendering Based on an Agile Fixed-Price Contract -- 5.1. Appropriate Tender Content for an Agile Fixed-Price Contract -- 5.2. Requirements for Tendering and Selection -- 5.2.1. Competition -- 5.2.2. Comparability and Transparency -- 5.3. Tendering Steps with a Focus on Agile Fixed Price -- 5.3.1. Internal Goal Setting and Coordination -- 5.3.2. Preparation for the Invitation to Tender -- 5.3.3. Tender -- 5.3.4. Awarding of the Tender -- 5.3.5. Price Optimization Options -- 5.3.6. Project and Contract Management -- 5.3.7. Effort Inherent in the Tendering Process -- 5.4. Summary -- 6. Special Requirements for the Legal Framework of an Agile Fixed-Price Contract -- 6.1. Adaptable system for scope -- 6.2. Warranty and Damages -- 6.3. Schedule and Milestones -- 6.4. Path of Escalation -- 6.5. Obligations -- 6.6. Summary -- 7. Guideline for the Negotiation of an Agile Fixed-Price Contract -- 7.1. Objectives of the Client -- 7.2. Objectives of the Contractor -- 7.3. Objectives and Bonus Payouts of the People Involved -- 7.4. Strategy for the Project and the Negotiation -- 7.5. Tactics for the Negotiation -- 7.6. Price Determination -- 7.7. Conclusion of the Negotiation and Project Steering -- 7.8. Conclusions -- 8. Advantages and Disadvantages of Agile Fixed-Price Contracts -- 8.1. Detailed Analysis of the Pros and Cons -- 8.1.1. Budget Security -- 8.1.2. Requirement Flexibility -- 8.1.3. Detailed Requirements -- 8.1.4. Negotiating Costs -- 8.1.5. Estimate Security -- 8.1.6. Quality Risk -- 8.1.7. Price Elevation Tendency -- 8.1.8. Probability of Winning a Project Tender -- 8.1.9. Cost Risk -- 8.1.10. Security to Deliver a Project as a Whole -- 8.1.11. Acceptance Efforts -- 8.1.12. Pricing Transparency -- 8.1.13. Progress Transparency -- 8.1.14. Permanent Regulation -- 8.1.15. Securing the Investment -- 8.2. Summary and Overview -- 8.3. Conclusions -- 9. Toolbox for Agile Fixed-Price Contracts -- 9.1. Stimulating Interest Before the Negotiation -- 9.2. Identifying Issues of the Other Party -- 9.3. Establishing Common Language and Experiences -- 9.4. Feature Shoot-out -- 9.5. The Black Swan Scenario -- 9.6. Workshop on Contract Setup -- 9.7. Reports and Metrics -- 9.7.1. KISS Backlog View.
9.7.2. Focus: There Is a Single Goal! -- 10. Practical Examples -- 10.1. Example 1: Software Integration in a Migration Project -- 10.1.1. Initial Situation -- 10.1.2. Contract and Procedure for Traditional Methodologies -- 10.1.3. Contract and Procedure for Agile Methodologies -- 10.1.4. Contract for Example 1 -- 10.2. Example 2: Creating a Software Product -- 10.2.1. Initial Situation -- 10.2.2. Contract and Procedure for a Traditional Fixed-Price Contract -- 10.2.3. Contract and Procedure for a Time and Materials Contract -- 10.2.4. Contract and Procedure for an Agile Fixed-Price Contract -- 10.2.5. Conclusions1: Agility: What Is That? -- 1.1. The Agile Manifesto of 2001 -- 1.2. Agile Development Based on Scrum -- 1.2.1. The Principles of Organization -- 1.2.2. The Process Model -- 1.2.3. Estimation in Scrum -- 1.3. Agility from the Perspective of Procurement -- 1.4. Agility from the Perspective of the Software Provider -- 1.5. The 12 Principles of Agile Software Development -- 1.6. Summary -- 2. The Missing Piece of the Puzzle -- 2.1. The Problems with Traditional Fixed-Price Contracts -- 2.2. The Problems with Time and Materials Contracts -- 2.3. Something New: The Agile Fixed-Price Contract -- 2.4. Summary -- 3. What Is an Agile Fixed-Price Contract? -- 3.1. Existing Approaches -- 3.2. The Agile Fixed-Price Contract -- 3.2.1. How Is an Agile Fixed-Price Contract Set Up? -- 3.3. Summary -- 4. Sample of an Agile Fixed-Price Contract -- 5. Tendering Based on an Agile Fixed-Price Contract -- 5.1. Appropriate Tender Content for an Agile Fixed-Price Contract -- 5.2. Requirements for Tendering and Selection -- 5.2.1. Competition -- 5.2.2. Comparability and Transparency -- 5.3. Tendering Steps with a Focus on Agile Fixed Price -- 5.3.1. Internal Goal Setting and Coordination -- 5.3.2. Preparation for the Invitation to Tender -- 5.3.3. Tender -- 5.3.4. Awarding of the Tender -- 5.3.5. Price Optimization Options -- 5.3.6. Project and Contract Management -- 5.3.7. Effort Inherent in the Tendering Process -- 5.4. Summary -- 6. Special Requirements for the Legal Framework of an Agile Fixed-Price Contract -- 6.1. Adaptable system for scope -- 6.2. Warranty and Damages -- 6.3. Schedule and Milestones -- 6.4. Path of Escalation -- 6.5. Obligations -- 6.6. Summary -- 7. Guideline for the Negotiation of an Agile Fixed-Price Contract -- 7.1. Objectives of the Client -- 7.2. Objectives of the Contractor -- 7.3. Objectives and Bonus Payouts of the People Involved -- 7.4. Strategy for the Project and the Negotiation -- 7.5. Tactics for the Negotiation -- 7.6. Price Determination -- 7.7. Conclusion of the Negotiation and Project Steering -- 7.8. Conclusions -- 8. Advantages and Disadvantages of Agile Fixed-Price Contracts -- 8.1. Detailed Analysis of the Pros and Cons -- 8.1.1. Budget Security -- 8.1.2. Requirement Flexibility -- 8.1.3. Detailed Requirements -- 8.1.4. Negotiating Costs -- 8.1.5. Estimate Security -- 8.1.6. Quality Risk -- 8.1.7. Price Elevation Tendency -- 8.1.8. Probability of Winning a Project Tender -- 8.1.9. Cost Risk -- 8.1.10. Security to Deliver a Project as a Whole -- 8.1.11. Acceptance Efforts -- 8.1.12. Pricing Transparency -- 8.1.13. Progress Transparency -- 8.1.14. Permanent Regulation -- 8.1.15. Securing the Investment -- 8.2. Summary and Overview -- 8.3. Conclusions -- 9. Toolbox for Agile Fixed-Price Contracts -- 9.1. Stimulating Interest Before the Negotiation -- 9.2. Identifying Issues of the Other Party -- 9.3. Establishing Common Language and Experiences -- 9.4. Feature Shoot-out -- 9.5. The Black Swan Scenario -- 9.6. Workshop on Contract Setup -- 9.7. Reports and Metrics -- 9.7.1. KISS Backlog View -- 9.7.2. Focus: There Is a Single Goal! -- 10. Practical Examples -- 10.1. Example 1: Software Integration in a Migration Project -- 10.1.1. Initial Situation -- 10.1.2. Contract and Procedure for Traditional Methodologies -- 10.1.3. Contract and Procedure for Agile Methodologies -- 10.1.4. Contract for Example 1 -- 10.2. Example 2: Creating a Software Product -- 10.2.1. Initial Situation -- 10.2.2. Contract and Procedure for a Traditional Fixed-Price Contract -- 10.2.3. Contract and Procedure for a Time and Materials Contract -- 10.2.4. Contract and Procedure for an Agile Fixed-Price Contract -- 10.2.5. Conclusions1: Agility: What Is That? -- 1.1. The Agile Manifesto of 2001 -- 1.2. Agile Development Based on Scrum -- 1.2.1. The Principles of Organization -- 1.2.2. The Process Model -- 1.2.3. Estimation in Scrum -- 1.3. Agility from the Perspective of Procurement -- 1.4. Agility from the Perspective of the Software Provider -- 1.5. The 12 Principles of Agile Software Development -- 1.6. Summary -- 2. The Missing Piece of the Puzzle -- 2.1. The Problems with Traditional Fixed-Price Contracts -- 2.2. The Problems with Time and Materials Contracts -- 2.3. Something New: The Agile Fixed-Price Contract -- 2.4. Summary -- 3. What Is an Agile Fixed-Price Contract? -- 3.1. Existing Approaches -- 3.2. The Agile Fixed-Price Contract -- 3.2.1. How Is an Agile Fixed-Price Contract Set Up? -- 3.3. Summary -- 4. Sample of an Agile Fixed-Price Contract -- 5. Tendering Based on an Agile Fixed-Price Contract -- 5.1. Appropriate Tender Content for an Agile Fixed-Price Contract -- 5.2. Requirements for Tendering and Selection -- 5.2.1. Competition -- 5.2.2. Comparability and Transparency -- 5.3. Tendering Steps with a Focus on Agile Fixed Price -- 5.3.1. Internal Goal Setting and Coordination -- 5.3.2. Preparation for the Invitation to Tender -- 5.3.3. Tender -- 5.3.4. Awarding of the Tender -- 5.3.5. Price Optimization Options -- 5.3.6. Project and Contract Management -- 5.3.7. Effort Inherent in the Tendering Process -- 5.4. Summary -- 6. Special Requirements for the Legal Framework of an Agile Fixed-Price Contract -- 6.1. Adaptable system for scope -- 6.2. Warranty and Damages -- 6.3. Schedule and Milestones -- 6.4. Path of Escalation -- 6.5. Obligations -- 6.6. Summary -- 7. Guideline for the Negotiation of an Agile Fixed-Price Contract -- 7.1. Objectives of the Client -- 7.2. Objectives of the Contractor -- 7.3. Objectives and Bonus Payouts of the People Involved -- 7.4. Strategy for the Project and the Negotiation -- 7.5. Tactics for the Negotiation -- 7.6. Price Determination -- 7.7. Conclusion of the Negotiation and Project Steering -- 7.8. Conclusions -- 8. Advantages and Disadvantages of Agile Fixed-Price Contracts -- 8.1. Detailed Analysis of the Pros and Cons -- 8.1.1. Budget Security -- 8.1.2. Requirement Flexibility -- 8.1.3. Detailed Requirements -- 8.1.4. Negotiating Costs -- 8.1.5. Estimate Security -- 8.1.6. Quality Risk -- 8.1.7. Price Elevation Tendency -- 8.1.8. Probability of Winning a Project Tender -- 8.1.9. Cost Risk -- 8.1.10. Security to Deliver a Project as a Whole -- 8.1.11. Acceptance Efforts -- 8.1.12. Pricing Transparency -- 8.1.13. Progress Transparency -- 8.1.14. Permanent Regulation -- 8.1.15. Securing the Investment -- 8.2. Summary and Overview -- 8.3. Conclusions -- 9. Toolbox for Agile Fixed-Price Contracts -- 9.1. Stimulating Interest Before the Negotiation -- 9.2. Identifying Issues of the Other Party -- 9.3. Establishing Common Language and Experiences -- 9.4. Feature Shoot-out -- 9.5. The Black Swan Scenario -- 9.6. Workshop on Contract Setup -- 9.7. Reports and Metrics -- 9.7.1. KISS Backlog View -- 9.7.2. Focus: There Is a Single Goal! -- 10. Practical Examples -- 10.1. Example 1: Software Integration in a Migration Project -- 10.1.1. Initial Situation -- 10.1.2. Contract and Procedure for Traditional Methodologies -- 10.1.3. Contract and Procedure for Agile Methodologies -- 10.1.4. Contract for Example 1 -- 10.2. Example 2: Creating a Software Product -- 10.2.1. Initial Situation -- 10.2.2. Contract and Procedure for a Traditional Fixed-Price Contract -- 10.2.3. Contract and Procedure for a Time and Materials Contract -- 10.2.4. Contract and Procedure for an Agile Fixed-Price Contract -- 10.2.5. Conclusions.
Summary: A methodologically sophisticated, comprehensive approach to applying the Agile fixed-price contract to IT projects while maximizing customer and supplier relationships ""Interesting and necessary for IT managers and IT lawyers.""--Walter J. Jaburek, Dipl.-Ing., Dr. iur., Dr. techn. Approximately 50 percent of software developers use Scrum, an iterative and incremental development method for managing software projects and product or application development, in their work. The benefit of Scrum and other Agile methods is that they can address shifts in a large project.
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1. Agility: What Is That? -- 1.1. The Agile Manifesto of 2001 -- 1.2. Agile Development Based on Scrum -- 1.2.1. The Principles of Organization -- 1.2.2. The Process Model -- 1.2.3. Estimation in Scrum -- 1.3. Agility from the Perspective of Procurement -- 1.4. Agility from the Perspective of the Software Provider -- 1.5. The 12 Principles of Agile Software Development -- 1.6. Summary -- 2. The Missing Piece of the Puzzle -- 2.1. The Problems with Traditional Fixed-Price Contracts -- 2.2. The Problems with Time and Materials Contracts -- 2.3. Something New: The Agile Fixed-Price Contract -- 2.4. Summary -- 3. What Is an Agile Fixed-Price Contract? -- 3.1. Existing Approaches -- 3.2. The Agile Fixed-Price Contract -- 3.2.1. How Is an Agile Fixed-Price Contract Set Up? -- 3.3. Summary -- 4. Sample of an Agile Fixed-Price Contract -- 5. Tendering Based on an Agile Fixed-Price Contract -- 5.1. Appropriate Tender Content for an Agile Fixed-Price Contract -- 5.2. Requirements for Tendering and Selection -- 5.2.1. Competition -- 5.2.2. Comparability and Transparency -- 5.3. Tendering Steps with a Focus on Agile Fixed Price -- 5.3.1. Internal Goal Setting and Coordination -- 5.3.2. Preparation for the Invitation to Tender -- 5.3.3. Tender -- 5.3.4. Awarding of the Tender -- 5.3.5. Price Optimization Options -- 5.3.6. Project and Contract Management -- 5.3.7. Effort Inherent in the Tendering Process -- 5.4. Summary -- 6. Special Requirements for the Legal Framework of an Agile Fixed-Price Contract -- 6.1. Adaptable system for scope -- 6.2. Warranty and Damages -- 6.3. Schedule and Milestones -- 6.4. Path of Escalation -- 6.5. Obligations -- 6.6. Summary -- 7. Guideline for the Negotiation of an Agile Fixed-Price Contract -- 7.1. Objectives of the Client -- 7.2. Objectives of the Contractor -- 7.3. Objectives and Bonus Payouts of the People Involved -- 7.4. Strategy for the Project and the Negotiation -- 7.5. Tactics for the Negotiation -- 7.6. Price Determination -- 7.7. Conclusion of the Negotiation and Project Steering -- 7.8. Conclusions -- 8. Advantages and Disadvantages of Agile Fixed-Price Contracts -- 8.1. Detailed Analysis of the Pros and Cons -- 8.1.1. Budget Security -- 8.1.2. Requirement Flexibility -- 8.1.3. Detailed Requirements -- 8.1.4. Negotiating Costs -- 8.1.5. Estimate Security -- 8.1.6. Quality Risk -- 8.1.7. Price Elevation Tendency -- 8.1.8. Probability of Winning a Project Tender -- 8.1.9. Cost Risk -- 8.1.10. Security to Deliver a Project as a Whole -- 8.1.11. Acceptance Efforts -- 8.1.12. Pricing Transparency -- 8.1.13. Progress Transparency -- 8.1.14. Permanent Regulation -- 8.1.15. Securing the Investment -- 8.2. Summary and Overview -- 8.3. Conclusions -- 9. Toolbox for Agile Fixed-Price Contracts -- 9.1. Stimulating Interest Before the Negotiation -- 9.2. Identifying Issues of the Other Party -- 9.3. Establishing Common Language and Experiences -- 9.4. Feature Shoot-out -- 9.5. The Black Swan Scenario -- 9.6. Workshop on Contract Setup -- 9.7. Reports and Metrics -- 9.7.1. KISS Backlog View.

9.7.2. Focus: There Is a Single Goal! -- 10. Practical Examples -- 10.1. Example 1: Software Integration in a Migration Project -- 10.1.1. Initial Situation -- 10.1.2. Contract and Procedure for Traditional Methodologies -- 10.1.3. Contract and Procedure for Agile Methodologies -- 10.1.4. Contract for Example 1 -- 10.2. Example 2: Creating a Software Product -- 10.2.1. Initial Situation -- 10.2.2. Contract and Procedure for a Traditional Fixed-Price Contract -- 10.2.3. Contract and Procedure for a Time and Materials Contract -- 10.2.4. Contract and Procedure for an Agile Fixed-Price Contract -- 10.2.5. Conclusions1: Agility: What Is That? -- 1.1. The Agile Manifesto of 2001 -- 1.2. Agile Development Based on Scrum -- 1.2.1. The Principles of Organization -- 1.2.2. The Process Model -- 1.2.3. Estimation in Scrum -- 1.3. Agility from the Perspective of Procurement -- 1.4. Agility from the Perspective of the Software Provider -- 1.5. The 12 Principles of Agile Software Development -- 1.6. Summary -- 2. The Missing Piece of the Puzzle -- 2.1. The Problems with Traditional Fixed-Price Contracts -- 2.2. The Problems with Time and Materials Contracts -- 2.3. Something New: The Agile Fixed-Price Contract -- 2.4. Summary -- 3. What Is an Agile Fixed-Price Contract? -- 3.1. Existing Approaches -- 3.2. The Agile Fixed-Price Contract -- 3.2.1. How Is an Agile Fixed-Price Contract Set Up? -- 3.3. Summary -- 4. Sample of an Agile Fixed-Price Contract -- 5. Tendering Based on an Agile Fixed-Price Contract -- 5.1. Appropriate Tender Content for an Agile Fixed-Price Contract -- 5.2. Requirements for Tendering and Selection -- 5.2.1. Competition -- 5.2.2. Comparability and Transparency -- 5.3. Tendering Steps with a Focus on Agile Fixed Price -- 5.3.1. Internal Goal Setting and Coordination -- 5.3.2. Preparation for the Invitation to Tender -- 5.3.3. Tender -- 5.3.4. Awarding of the Tender -- 5.3.5. Price Optimization Options -- 5.3.6. Project and Contract Management -- 5.3.7. Effort Inherent in the Tendering Process -- 5.4. Summary -- 6. Special Requirements for the Legal Framework of an Agile Fixed-Price Contract -- 6.1. Adaptable system for scope -- 6.2. Warranty and Damages -- 6.3. Schedule and Milestones -- 6.4. Path of Escalation -- 6.5. Obligations -- 6.6. Summary -- 7. Guideline for the Negotiation of an Agile Fixed-Price Contract -- 7.1. Objectives of the Client -- 7.2. Objectives of the Contractor -- 7.3. Objectives and Bonus Payouts of the People Involved -- 7.4. Strategy for the Project and the Negotiation -- 7.5. Tactics for the Negotiation -- 7.6. Price Determination -- 7.7. Conclusion of the Negotiation and Project Steering -- 7.8. Conclusions -- 8. Advantages and Disadvantages of Agile Fixed-Price Contracts -- 8.1. Detailed Analysis of the Pros and Cons -- 8.1.1. Budget Security -- 8.1.2. Requirement Flexibility -- 8.1.3. Detailed Requirements -- 8.1.4. Negotiating Costs -- 8.1.5. Estimate Security -- 8.1.6. Quality Risk -- 8.1.7. Price Elevation Tendency -- 8.1.8. Probability of Winning a Project Tender -- 8.1.9. Cost Risk -- 8.1.10. Security to Deliver a Project as a Whole -- 8.1.11. Acceptance Efforts -- 8.1.12. Pricing Transparency -- 8.1.13. Progress Transparency -- 8.1.14. Permanent Regulation -- 8.1.15. Securing the Investment -- 8.2. Summary and Overview -- 8.3. Conclusions -- 9. Toolbox for Agile Fixed-Price Contracts -- 9.1. Stimulating Interest Before the Negotiation -- 9.2. Identifying Issues of the Other Party -- 9.3. Establishing Common Language and Experiences -- 9.4. Feature Shoot-out -- 9.5. The Black Swan Scenario -- 9.6. Workshop on Contract Setup -- 9.7. Reports and Metrics -- 9.7.1. KISS Backlog View.

9.7.2. Focus: There Is a Single Goal! -- 10. Practical Examples -- 10.1. Example 1: Software Integration in a Migration Project -- 10.1.1. Initial Situation -- 10.1.2. Contract and Procedure for Traditional Methodologies -- 10.1.3. Contract and Procedure for Agile Methodologies -- 10.1.4. Contract for Example 1 -- 10.2. Example 2: Creating a Software Product -- 10.2.1. Initial Situation -- 10.2.2. Contract and Procedure for a Traditional Fixed-Price Contract -- 10.2.3. Contract and Procedure for a Time and Materials Contract -- 10.2.4. Contract and Procedure for an Agile Fixed-Price Contract -- 10.2.5. Conclusions1: Agility: What Is That? -- 1.1. The Agile Manifesto of 2001 -- 1.2. Agile Development Based on Scrum -- 1.2.1. The Principles of Organization -- 1.2.2. The Process Model -- 1.2.3. Estimation in Scrum -- 1.3. Agility from the Perspective of Procurement -- 1.4. Agility from the Perspective of the Software Provider -- 1.5. The 12 Principles of Agile Software Development -- 1.6. Summary -- 2. The Missing Piece of the Puzzle -- 2.1. The Problems with Traditional Fixed-Price Contracts -- 2.2. The Problems with Time and Materials Contracts -- 2.3. Something New: The Agile Fixed-Price Contract -- 2.4. Summary -- 3. What Is an Agile Fixed-Price Contract? -- 3.1. Existing Approaches -- 3.2. The Agile Fixed-Price Contract -- 3.2.1. How Is an Agile Fixed-Price Contract Set Up? -- 3.3. Summary -- 4. Sample of an Agile Fixed-Price Contract -- 5. Tendering Based on an Agile Fixed-Price Contract -- 5.1. Appropriate Tender Content for an Agile Fixed-Price Contract -- 5.2. Requirements for Tendering and Selection -- 5.2.1. Competition -- 5.2.2. Comparability and Transparency -- 5.3. Tendering Steps with a Focus on Agile Fixed Price -- 5.3.1. Internal Goal Setting and Coordination -- 5.3.2. Preparation for the Invitation to Tender -- 5.3.3. Tender -- 5.3.4. Awarding of the Tender -- 5.3.5. Price Optimization Options -- 5.3.6. Project and Contract Management -- 5.3.7. Effort Inherent in the Tendering Process -- 5.4. Summary -- 6. Special Requirements for the Legal Framework of an Agile Fixed-Price Contract -- 6.1. Adaptable system for scope -- 6.2. Warranty and Damages -- 6.3. Schedule and Milestones -- 6.4. Path of Escalation -- 6.5. Obligations -- 6.6. Summary -- 7. Guideline for the Negotiation of an Agile Fixed-Price Contract -- 7.1. Objectives of the Client -- 7.2. Objectives of the Contractor -- 7.3. Objectives and Bonus Payouts of the People Involved -- 7.4. Strategy for the Project and the Negotiation -- 7.5. Tactics for the Negotiation -- 7.6. Price Determination -- 7.7. Conclusion of the Negotiation and Project Steering -- 7.8. Conclusions -- 8. Advantages and Disadvantages of Agile Fixed-Price Contracts -- 8.1. Detailed Analysis of the Pros and Cons -- 8.1.1. Budget Security -- 8.1.2. Requirement Flexibility -- 8.1.3. Detailed Requirements -- 8.1.4. Negotiating Costs -- 8.1.5. Estimate Security -- 8.1.6. Quality Risk -- 8.1.7. Price Elevation Tendency -- 8.1.8. Probability of Winning a Project Tender -- 8.1.9. Cost Risk -- 8.1.10. Security to Deliver a Project as a Whole -- 8.1.11. Acceptance Efforts -- 8.1.12. Pricing Transparency -- 8.1.13. Progress Transparency -- 8.1.14. Permanent Regulation -- 8.1.15. Securing the Investment -- 8.2. Summary and Overview -- 8.3. Conclusions -- 9. Toolbox for Agile Fixed-Price Contracts -- 9.1. Stimulating Interest Before the Negotiation -- 9.2. Identifying Issues of the Other Party -- 9.3. Establishing Common Language and Experiences -- 9.4. Feature Shoot-out -- 9.5. The Black Swan Scenario -- 9.6. Workshop on Contract Setup -- 9.7. Reports and Metrics -- 9.7.1. KISS Backlog View -- 9.7.2. Focus: There Is a Single Goal! -- 10. Practical Examples -- 10.1. Example 1: Software Integration in a Migration Project -- 10.1.1. Initial Situation -- 10.1.2. Contract and Procedure for Traditional Methodologies -- 10.1.3. Contract and Procedure for Agile Methodologies -- 10.1.4. Contract for Example 1 -- 10.2. Example 2: Creating a Software Product -- 10.2.1. Initial Situation -- 10.2.2. Contract and Procedure for a Traditional Fixed-Price Contract -- 10.2.3. Contract and Procedure for a Time and Materials Contract -- 10.2.4. Contract and Procedure for an Agile Fixed-Price Contract -- 10.2.5. Conclusions1: Agility: What Is That? -- 1.1. The Agile Manifesto of 2001 -- 1.2. Agile Development Based on Scrum -- 1.2.1. The Principles of Organization -- 1.2.2. The Process Model -- 1.2.3. Estimation in Scrum -- 1.3. Agility from the Perspective of Procurement -- 1.4. Agility from the Perspective of the Software Provider -- 1.5. The 12 Principles of Agile Software Development -- 1.6. Summary -- 2. The Missing Piece of the Puzzle -- 2.1. The Problems with Traditional Fixed-Price Contracts -- 2.2. The Problems with Time and Materials Contracts -- 2.3. Something New: The Agile Fixed-Price Contract -- 2.4. Summary -- 3. What Is an Agile Fixed-Price Contract? -- 3.1. Existing Approaches -- 3.2. The Agile Fixed-Price Contract -- 3.2.1. How Is an Agile Fixed-Price Contract Set Up? -- 3.3. Summary -- 4. Sample of an Agile Fixed-Price Contract -- 5. Tendering Based on an Agile Fixed-Price Contract -- 5.1. Appropriate Tender Content for an Agile Fixed-Price Contract -- 5.2. Requirements for Tendering and Selection -- 5.2.1. Competition -- 5.2.2. Comparability and Transparency -- 5.3. Tendering Steps with a Focus on Agile Fixed Price -- 5.3.1. Internal Goal Setting and Coordination -- 5.3.2. Preparation for the Invitation to Tender -- 5.3.3. Tender -- 5.3.4. Awarding of the Tender -- 5.3.5. Price Optimization Options -- 5.3.6. Project and Contract Management -- 5.3.7. Effort Inherent in the Tendering Process -- 5.4. Summary -- 6. Special Requirements for the Legal Framework of an Agile Fixed-Price Contract -- 6.1. Adaptable system for scope -- 6.2. Warranty and Damages -- 6.3. Schedule and Milestones -- 6.4. Path of Escalation -- 6.5. Obligations -- 6.6. Summary -- 7. Guideline for the Negotiation of an Agile Fixed-Price Contract -- 7.1. Objectives of the Client -- 7.2. Objectives of the Contractor -- 7.3. Objectives and Bonus Payouts of the People Involved -- 7.4. Strategy for the Project and the Negotiation -- 7.5. Tactics for the Negotiation -- 7.6. Price Determination -- 7.7. Conclusion of the Negotiation and Project Steering -- 7.8. Conclusions -- 8. Advantages and Disadvantages of Agile Fixed-Price Contracts -- 8.1. Detailed Analysis of the Pros and Cons -- 8.1.1. Budget Security -- 8.1.2. Requirement Flexibility -- 8.1.3. Detailed Requirements -- 8.1.4. Negotiating Costs -- 8.1.5. Estimate Security -- 8.1.6. Quality Risk -- 8.1.7. Price Elevation Tendency -- 8.1.8. Probability of Winning a Project Tender -- 8.1.9. Cost Risk -- 8.1.10. Security to Deliver a Project as a Whole -- 8.1.11. Acceptance Efforts -- 8.1.12. Pricing Transparency -- 8.1.13. Progress Transparency -- 8.1.14. Permanent Regulation -- 8.1.15. Securing the Investment -- 8.2. Summary and Overview -- 8.3. Conclusions -- 9. Toolbox for Agile Fixed-Price Contracts -- 9.1. Stimulating Interest Before the Negotiation -- 9.2. Identifying Issues of the Other Party -- 9.3. Establishing Common Language and Experiences -- 9.4. Feature Shoot-out -- 9.5. The Black Swan Scenario -- 9.6. Workshop on Contract Setup -- 9.7. Reports and Metrics -- 9.7.1. KISS Backlog View -- 9.7.2. Focus: There Is a Single Goal! -- 10. Practical Examples -- 10.1. Example 1: Software Integration in a Migration Project -- 10.1.1. Initial Situation -- 10.1.2. Contract and Procedure for Traditional Methodologies -- 10.1.3. Contract and Procedure for Agile Methodologies -- 10.1.4. Contract for Example 1 -- 10.2. Example 2: Creating a Software Product -- 10.2.1. Initial Situation -- 10.2.2. Contract and Procedure for a Traditional Fixed-Price Contract -- 10.2.3. Contract and Procedure for a Time and Materials Contract -- 10.2.4. Contract and Procedure for an Agile Fixed-Price Contract -- 10.2.5. Conclusions.

A methodologically sophisticated, comprehensive approach to applying the Agile fixed-price contract to IT projects while maximizing customer and supplier relationships ""Interesting and necessary for IT managers and IT lawyers.""--Walter J. Jaburek, Dipl.-Ing., Dr. iur., Dr. techn. Approximately 50 percent of software developers use Scrum, an iterative and incremental development method for managing software projects and product or application development, in their work. The benefit of Scrum and other Agile methods is that they can address shifts in a large project.

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