This document discusses various contract models for software development projects, including time and materials, outcome-based, fixed cost, fixed scope, and fixed time and scope contracts. It provides examples of each contract type and discusses how to plan, estimate, deliver, and measure when using different contract models. The key message is that different contract types provide different levels of predictability for cost and schedule while balancing flexibility, and that customer collaboration is more important than contracts alone.
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Hinweis der Redaktion
Legal vs non-legal contracts
Blank cheque
By project, release or project
Performance based contracting
But how do you define an outcome
SaaS, pay per use, & partnerships
Business Case - a document which reviews potential risks, benefits and other potential impacts of a PBC, usually presented to senior managers to aid in their decision making
Outcomes - a short statement reflecting the desired result or final deliverable of the contract
Measures - define a set of performance measures that collectively measure the organisations performance against the outcome statement
Levels - set performance levels for the performance measures, i.e. how well the contractor needs to perform
Payment - develop a set of payment curves which set out the pay for performance regime i.e. how much the contractor gets paid for their performance level
Incentives - set out a group of incentives that encourage positive behaviours and discourage negative behaviours
Contract - draft, review, workshop and finalise a contract which covers all aspects of the performance, payment and terms and conditions of the relationship
Review - conduct an analysis of the outcomes of the PBC, taking into account the differing definitions of success from the different groups involved in the contract.
Fixed price doesn’t neccersarily mean fixed time, cost and scope
Also misleading
Misleading; 30% extra cost
Lever: hourly rate
work in absolute Customer priority order. Reducing the time spent on technical support Tasks will help meet short-term budget constraints, at the cost of long-term efficiency.
For Incremental Delivery, release in short (one-two week) Iterations. Longer Iterations have a tendency to cost overruns, similar to waterfall projects
Why can’t we use story points
• For Requirements with equivalent priorities, work in Story Point order (from smallest to largest). This increases the total number of Requirements the Team can complete by the due date.• Enforce Iteration duration for Incremental Delivery. The duration is defined by a fixed number of Iterations, and extending an Iteration will push out your final date.
How to deliver:
Work in predefined, and agreed, Requirements Backlog priority order.
Increase the estimate risk during planning, to ensure your quote allows for unexpected delays that would affect your cost to deliver.
Not change request – exchange request
Pre-assign Requirements by week, or Iteration, during planning, to define the scope delivery timetable. Pad the schedule with extra time, to cater for unexpected defects, or technical debt.
Increase the size of the Team prior to completing all the Requirements (e.g. three-four Iterations for Incremental Delivery), if required, to ensure the scope is completed on time
Collaborate with them early
Let’s finish off by looking at our original definition of business growth; Business growth comes from applying profitability to customer growth. Profitability comes from delivering services to your customers, accurately and efficiently. Over the last 15 minutes we have looked at some of the mechanisms from the lean and agile traditions that we can apply for adaptable businesses and sustainable business growth.
And I’ll leave you on that note. Any questions.