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Which all important points should be considered while creating Agile based contracts or SOW?

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Gaurav Dhooper Assistant Vice President| Genpact Noida, U.P., India
Important points to be kept in mind while creating contracts for Agile execution mode projects.
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Wade Harshman Scrum Master| GDIT Indianapolis, In, United States
Could you describe your situation? What do you mean by agile based contract?
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1 reply by Gaurav Dhooper
May 13, 2019 8:10 PM
Gaurav Dhooper
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Where scope of work will be delivered using Agile approach.
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Kiron Bondale Retired | Mentor| Retired Welland, Ontario, Canada
Gaurav -

if you are referring to a contract where a vendor will work with the client for delivering a project where some or all of the scope will be completed using an agile delivery approach then:

1. Have early termination options or clauses so that if business needs can be met at a lower price point than the contract ceiling, the client can terminate without significant penalties. Same if the project viability comes into question.

2. Unless the vendor can successfully deliver their scope with minimal interaction with the client, try to establish shared goals/objectives, common ways of working, common working agreements and so on. This might include the vendor using the same toolset as the client, being co-located with the client.

Kiron
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1 reply by Gaurav Dhooper
May 13, 2019 8:12 PM
Gaurav Dhooper
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Thanks Kiron. This helps but the point of colocation between vendor and client is usually not feasible or acceptable due to cost or relocation constraints. But yes, colocation of vendor's scrum team and scrum master are definitely recommended for better coordination and collaboration if scrum is chosen as the framework for execution.
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Gaurav Dhooper Assistant Vice President| Genpact Noida, U.P., India
May 13, 2019 3:18 PM
Replying to Wade Harshman
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Could you describe your situation? What do you mean by agile based contract?
Where scope of work will be delivered using Agile approach.
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Gaurav Dhooper Assistant Vice President| Genpact Noida, U.P., India
May 13, 2019 5:46 PM
Replying to Kiron Bondale
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Gaurav -

if you are referring to a contract where a vendor will work with the client for delivering a project where some or all of the scope will be completed using an agile delivery approach then:

1. Have early termination options or clauses so that if business needs can be met at a lower price point than the contract ceiling, the client can terminate without significant penalties. Same if the project viability comes into question.

2. Unless the vendor can successfully deliver their scope with minimal interaction with the client, try to establish shared goals/objectives, common ways of working, common working agreements and so on. This might include the vendor using the same toolset as the client, being co-located with the client.

Kiron
Thanks Kiron. This helps but the point of colocation between vendor and client is usually not feasible or acceptable due to cost or relocation constraints. But yes, colocation of vendor's scrum team and scrum master are definitely recommended for better coordination and collaboration if scrum is chosen as the framework for execution.
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1 reply by Mary Jo Maralit
May 14, 2019 10:38 AM
Mary Jo Maralit
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I did not state that I wanted an Agile project. We gave vendors a chance to propose a project planning methodology that they will use for the project. Quotes came in with varying project management options; and in the end, we decided to use a team that proposed to use an Agile Methodology.

Our Agile team works remotely from different locations. It helps if communication lines are open (use of tools like slack, jira, etc.) and all meetings are video meetings - this helps to build the team relationships. Including everyone in Sprint Planning, scrum and retros are key as well. Managing expectations among the team, product owner, stakeholders, and sponsors is key.
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Anton Oosthuizen Senior Business Analyst / Project Manager| Self Employed Pretoria, Gauteng, South Africa
I would also pay close attention to the definition of done and/or success. Also, make sure that the problem/s that must be solved are clearly articulated. Remember that Agile is about delivering value, solving the problem. So the measure of success would not be about what you deliver alone but mainly if what you delivered solved the problem. I think most of us have been in a place where we delivered the exact scope but did not leave behind happy end users. If this concept is agreed on contract level you remove a lot of misunderstanding.
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Sergio Luis Conte Helping to create solutions for everyone| Worldwide based Organizations Buenos Aires, Argentina
No more than other type of contracts. My recommendation is searching into the internet because there is not enough room here to write. No matter that, @Anton has wrote some interesting points. Key is to understand if you will use an agile based method/framework or not. That will determine the dynamic. Project team location, project change management, project deliverables documentation, payment method, scope validation and verification, quality control are some of the key topics but as I mentioned most of them are tied to the method you will use.
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Mary Jo Maralit Program Specialist| Education Washington, Dc, United States
May 13, 2019 8:12 PM
Replying to Gaurav Dhooper
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Thanks Kiron. This helps but the point of colocation between vendor and client is usually not feasible or acceptable due to cost or relocation constraints. But yes, colocation of vendor's scrum team and scrum master are definitely recommended for better coordination and collaboration if scrum is chosen as the framework for execution.
I did not state that I wanted an Agile project. We gave vendors a chance to propose a project planning methodology that they will use for the project. Quotes came in with varying project management options; and in the end, we decided to use a team that proposed to use an Agile Methodology.

Our Agile team works remotely from different locations. It helps if communication lines are open (use of tools like slack, jira, etc.) and all meetings are video meetings - this helps to build the team relationships. Including everyone in Sprint Planning, scrum and retros are key as well. Managing expectations among the team, product owner, stakeholders, and sponsors is key.
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1 reply by Gaurav Dhooper
May 14, 2019 11:05 AM
Gaurav Dhooper
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Thanks Mary for sharing your feedback and experience. Great inputs.
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Gaurav Dhooper Assistant Vice President| Genpact Noida, U.P., India
May 14, 2019 10:38 AM
Replying to Mary Jo Maralit
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I did not state that I wanted an Agile project. We gave vendors a chance to propose a project planning methodology that they will use for the project. Quotes came in with varying project management options; and in the end, we decided to use a team that proposed to use an Agile Methodology.

Our Agile team works remotely from different locations. It helps if communication lines are open (use of tools like slack, jira, etc.) and all meetings are video meetings - this helps to build the team relationships. Including everyone in Sprint Planning, scrum and retros are key as well. Managing expectations among the team, product owner, stakeholders, and sponsors is key.
Thanks Mary for sharing your feedback and experience. Great inputs.

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