Construction Fixed Price Contract With Agile
Description
How to fill out Construction Contract For Home - Fixed Fee Or Cost Plus?
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FAQ
In an Agile organization, the Construction fixed price contract with agile proves to be highly effective. This contract type offers budget certainty while allowing for flexibility in project requirements. It enables teams to adapt to changes without the risk of escalating costs. By using this contract, you ensure clear expectations and accountability, making it easier to manage both timelines and quality.
An agile contract should reflect the agile mindset and principles, such as customer satisfaction, change embracement, collaboration, transparency, and flexibility. The contract should focus on delivering value and quality to the customer, rather than meeting predefined specifications and deadlines.
So, the best fit projects for execution under a Fixed price agreement would ideally be small to medium in size, where the project requirements are well defined in advance. The Waterfall model can be used for executing such a project.
Rather, they'll need to increase the cost by adding extra resources, reduce the scope or extend the timeline to meet their goals. Agile can actually become a boon for fixed price projects, as cost and date are fixed but the scope is subject to variations.
An agile contract should reflect the agile mindset and principles, such as customer satisfaction, change embracement, collaboration, transparency, and flexibility. The contract should focus on delivering value and quality to the customer, rather than meeting predefined specifications and deadlines.
The inherent conflict between fixed price and schedule and an agile approach to software developments offers a challenge. Changes in scope, schedule and cost must all be avoided but changes in risk, complexity, requirements and resources still responded to.