Re: [AM] payment in agile development

Ashley McNeile wrote:
>>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
> 
> That seems a nice approach. I would be interested to know:
> 
> 1. Why the rule about no cancellation after the first iteration?

A first iteration doesn't provide enough information to judge the pace 
of the project, so it seems unreasonable to cancel a project that quickly.

> 2. Can you give use any approximate figure (or range) for the size of an
> iteration, say in man-days?

It was a solo project and iterations were two weeks, so 10 
man-days/iteration.

> 3. How did the client(s) react to the rule that mid iteration cancellation
> is not allowed?  Presumably, they can cancel the work, but have to pay you
> the fixed price for the iteration anyway? I would imagine that this could be
> difficult to get past the client's Legal and Contracts people.

They agreed it was better than paying for six months' work before 
getting any kind of deliverable, which is a common alternative to which 
they have become accustomed. Their standard clause is 14 days' notice to 
cancel, so this cancelation policy is actually better for them.
-- 
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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