Andreas Opelt is Vice President for Sales, Product Marketing, and Partner Management at Infonova.
 
Boris Gloger is ranked worldwide among the pioneers of Scrum. He continues to develop practices and set training standards internationally.
 
Wolfgang Pfarl is a trained lawyer and is responsible for the IT procurement at the Austrian Post.
 
Ralf Mittermayr is a partner at BearingPoint and focuses on conceptual design and delivery of complex software solutions to the banking, telecommunications, and supply industries.

In the contract development process, as in any development process, clients, customers, and managers have a vested interest in meeting time, budget, and performance requirements.

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
 
4. Sample of an Agile Fixed-Price Contract 73
 
Preamble 74
 
1 Definitions and Clarifications of Terms 75
 
2 Contract Scope and Hierarchy of Documents 78
 
3 Usage Rights 79
 
4 Transparency and "Open Books" 79
 
5 Acceptance 80
 
6 Obligation of Both Parties to Co-Operate 81
 
7 Client's Obligations 84
 
8 Escalation to the Steering Board and the Independent Experts 84
 
9 Project Period 85
 
10 Warranty, Compensation, and Indemnifi cation 86
 
11 Limitation of Liability 86
 
12 Contractor's Compensation 87
 
13 Force Majeure 87
 
14 Secrecy 87
 
15 Severability Clause 88
 
16 Place of Performance, Jurisdiction, and Applicable Law 88
 
Appendix A: Commercial Agreements 88
 
Prices 88
 
Commercial Approach to the Project 90
 
Payment Milestones 92
 
Appendix B: Technical Scope and Process 92
 
Requirements: Backlog and Vision 92
 
Process for Development and Approval 93
 
Changes to the Contract (Exchange for Free) 95
 
Deliverables and Services 97
 

Mechanism to Calculate Costs of Future User Stories 98
 
Appendix C: 12 Principles of Cooperation 101
 
Appendix D: Quality Standards--Definition of Done 107
 
5. Tendering Based on an Agile Fixed-Price Contract 109
 
5.1 Appropriate Tender Content for an Agile Fixed-Price Contract 112
 
5.2 Requirements for Tendering and Selection 116
 
5.2.1 Competition 116
 
5.2.2 Comparability and Transparency 119
 
5.3 Tendering Steps with a Focus on Agile Fixed Price 122
 
5.3.1 Internal Goal Setting and Coordination 123
 
5.3.2 Preparation for the Invitation to Tender 124
 
5.3.3 Tender 126
 
5.3.4 Awarding of the Tender 130
 
5.3.5 Price Optimization Options 132
 
5.3.6 Project and Contract Management 134
 
5.3.7 Effort Inherent in the Tendering Process 134
 
5.4 Summary 134
 
6. Special Requirements for the Legal Framework of an Agile Fixed-Price Contract 137
 
6.1 Adaptable System for Scope 139
 
6.2 Warranty and Damages 140
 
6.3 Schedule and Milestones 141
 
6.4 Path of Escalation 142
 
6.5 Obligations 143
 
6.6 Summary 143
 
7. Guideline for the Negotiation of an Agile Fixed-Price Contract 145
 
7.1 Objectives of the Client 147
 
7.2 Objectives of the Contractor 148
 
7.3 Objectives and Bonus Payouts of the People Involved 149
 
7.4 Strategy for the Project and the Negotiation 151
 
7

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 that traditional managerial methods cannot.
 
Written by pioneers and leaders in the field of Agile and Scrum, Agile Contracts is the only book dedicated exclusively to the legal, procurement, and project management considerations of Agile contracts. Providing templates, a toolbox, and examples of Agile fixed-price contracts, the book presents an alternative option to fixed-price, time-based, and supply-based contracts-reducing the risk for both the supplier and the customer with a contract that offers the possibility of flux and flexible scenarios as a project progresses.
 
Agile Contracts features in-depth chapter coverage of:
* The Agile Manifesto of 2001
* Agility from the perspective of procurement and the software provider
* The problems with traditional fixed-price contracts and time material contracts
* What the Agile fixed-price contract is and how it is set up
* Tendering based on the Agile fixed-price contract
* How to negotiate an Agile fixed-price contract
* Special guidelines for the legal framework of an Agile fixed-price contract
* Adaptable Scope System
* The Black Swan scenario
* Contracts and procedures for the featured methodologies
 
Especially applicable within highly structured business organizations, Agile Contracts is a must-read for project managers, agile practitioners, procurement representatives, and IT lawyers.