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Agile Contracts - Creating and Managing Successful Projects with...
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A methodologically sophisticated, comprehensive approach to applying the Agile fixed-price contract to IT projects while maximizing customer and supplier relationships
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Agile Contracts
Praise for Agile Contracts
“Agile development is starting to become popular in Japan, though Japanese
companies have used ‘all in one contracts’ for the last three decades. In this
movement, the new type of contract is a critical issue in achieving success in agile
development. The concept and solution in this book is a step in the right direc-
tion. It will help Japanese companies and vendors transform development. The
management change described in this book and in general in IT projects needs
to advance toward the unique market in Japan.”
—Naoyuki Miyahara, IT Manager, ABeam Consulting Ltd.
“It is a challenge to fully establish the positive aspects of the agile software
development project within customer–supplier relationships. This applies espe-
cially to highly structured business organizations
. . . . This book closes all the
remaining gaps and presents a methodologically sophisticated and comprehen-
sive approach, as well as valuable practical experience and templates. At the
same time it is technically sound and pleasant to read. All readers will benefi t
from the described methodology, especially the suppliers and the clients of such
projects. A higher success rate of projects, partnerships, and sustainable ways of
working are ultimately a benefi t to all concerned.”
—Steffen Kießling, Manager, Product Lifecycle Management, Bearing Point
“Agile software development methods have become the de facto standard in
recent years
. . . . This book should be required reading, primarily for buyers and
sellers of software projects, in order to truly handle continuous ‘end to end’
projects for agile. This book describes the appropriate interfaces and templates
for the contract work, based on a cooperation model. The application of these
approaches provides both parties with a decisive competitive edge over the (still)
de facto standard form of contract.”
—Dr. Stefan Klein, Head of Development, Infonova
WILEY SERIES IN SYSTEMS ENGINEERING
AND MANAGEMENT
Andrew P. Sage, Editor
A complete list of the titles in this series appears at the end of this volume.
AGILE CONTRACTS
Creating and Managing Successful
Projects with Scrum
Andreas Opelt
Boris Gloger
Wolfgang Pfarl
Ralf Mittermayr
Cover design: Michael Rutkowski
Cover photograph: © Michael Rutkowski
Copyright © 2013 by John Wiley & Sons, Inc. All rights reserved
Published by John Wiley & Sons, Inc., Hoboken, New Jersey
Published simultaneously in Canada
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in
any form or by any means, electronic, mechanical, photocopying, recording, scanning, or
otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright
Act, without either the prior written permission of the Publisher, or authorization through
payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc.,
222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4470, or on the web at
www.copyright.com . Requests to the Publisher for permission should be addressed to the
Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030,
(201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions .
Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best
efforts in preparing this book, they make no representations or warranties with respect to the
accuracy or completeness of the contents of this book and specifi cally disclaim any implied
warranties of merchantability or fi tness for a particular purpose. No warranty may be created
or extended by sales representatives or written sales materials. The advice and strategies
contained herein may not be suitable for your situation. You should consult with a professional
where appropriate. Neither the publisher nor author shall be liable for any loss of profi t or any
other commercial damages, including but not limited to special, incidental, consequential, or
other damages.
For general information on our other products and services or for technical support, please
contact our Customer Care Department within the United States at (800) 762-2974, outside the
United States at (317) 572-3993 or fax (317) 572-4002.
Wiley also publishes its books in a variety of electronic formats. Some content that appears in
print may not be available in electronic formats. For more information about Wiley products,
visit our web site at www.wiley.com .
Library of Congress Cataloging-in-Publication Data:
Opelt, Andreas, 1978–
Agile contracts: creating and managing successful projects with Scrum / Andreas Opelt, Boris
Gloger, Wolfgang Pfarl, Ralf Mittermayr.
pages cm
Includes bibliographical references.
ISBN 978-1-118-63094-5 (cloth)
1. Agile software development. 2. Scrum (Computer software development)
3. Computer contracts. I. Gloger, Boris, 1968– II. Pfarl, Wolfgang, 1979–
III. Mittermayr, Ralf. IV. Title.
QA76.76.D47O64 2013
005.1–dc23
2012050396
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
Contents
Preface ix
Acknowledgments xiii
1. Agility: What Is That? 1
1.1 The Agile Manifesto of 2001 / 6
1.2 Agile Development Based on Scrum / 11
1.2.1 The Principles of Organization / 14
1.2.2 The Process Model / 14
1.2.3 Estimation in Scrum / 19
1.3 Agility from the Perspective of Procurement / 23
1.4 Agility from the Perspective of the Software Provider / 25
1.5 The 12 Principles of Agile Software Development / 26
1.6 Summary / 32
2. The Missing Piece of the Puzzle 33
2.1 The Problems with Traditional Fixed-Price Contracts / 37
2.2 The Problems with Time and Materials Contracts / 43
2.3 Something New: The Agile Fixed-Price Contract / 44
2.4 Summary / 45
3. What Is an Agile Fixed-Price Contract? 47
3.1 Existing Approaches / 48
3.2 The Agile Fixed-Price Contract / 49
3.2.1 How Is an Agile Fixed-Price Contract Set Up? / 50
3.3 Summary / 71
v
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