Re: [AM] payment in agile development

"J. B. Rainsberger" <[email protected]>
Newsgroups gmane.comp.programming.modeling.agile
Message-ID <[email protected]>
Daniel Brenner wrote:

> Hallo,
> 
> since I am still at the university (and have no experience with that) I 
> am curious to know how a agile project is payed.

I did it this way, and it worked well.

  * The first two iterations are a fixed price
  * Each iteration after that is a fixed price
  * The client is allowed to cancel the project at any time after the 
end of an iteration, except the end of the first iteration

The maximum lost expense for the client is the price of two iterations.

At the end of each iteration, the client decides whether to continue the 
project. If the client decides to continue, then the next iteration must 
go to completion. The client is not allowed to stop in the middle of an 
iteration.

The idea is that the client gets to decide very early whether things are 
not going well, and can cancel if necessary. This is much less risky 
than traditional contracts.
-- 
J. B. Rainsberger,
Diaspar Software Services
http://www.diasparsoftware.com :: +1 416 791-8603
Let's write software that people understand

For more information about AM, visit the Agile Modeling Home Page at www.agilemodeling.com
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