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fixed price contract

Agile Contracting: Discovery, Fixed Budget, Variable Scope

by Avienaash Shiralige Leave a Comment

We discussed about committing fixed number of story points and swapping any additional scope with existing backlog in our previous post “Agile for Fixed Bid Projects“. This is a great way to maximize value with minimal change in timelines and budget. This works well when there is a trust existing between product and engineering, and client/product team understands this agile approach. Still, fixing size, undermines one major aspect of an agile team – “applying learning back into the project”. Development teams while doing size estimation give higher points where there are uncertainties and risks.  Known unknowns, new technology, unclear requirements etc. are few reasons for providing higher story points. As project progresses, teams get more knowledgeable (both technology and business) and hence some tasks now look smaller than before.

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