Does the use of agile project management require new contract models in order to be successful? Can agile project management be used with traditional fixed price contracts? Does agile project management require a new type of contract? And if so, what sorts of contracts are required? Furthermore, wouldn’t a new type of contract discourage the use of agile PM?
Agile project management is a new paradigm for managing high risk, time sensitive, R&D-oriented new product and service development projects. It’s a lightweight, flexible, collaborative, adaptable and highly disciplined project management model for building high-quality hardware and software technology-intensive products and services.
Agile project management is designed to lead and empower teams to deliver business value over meeting constraints by adapting to change over following plans. This is accomplished with a light structure of product visioning, adaptive planning, iterative development and thorough product testing. It is also based on a strong foundation of customer collaboration and teamwork.
The traditional model of project management attempts to minimize risk through exhaustive scope definition, planning, documentation and process controls. Completing a project within a 5 or 10 percent level of scope, time and cost under- or overrun is considered success. Detailed work breakdown
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