Haneen AlHaddadFunctional Manager| Squareone TechnologiesAmman, AM, Jordan
What's the first stage of the project determine ? Is it find the best approach of the project ( Agile, Waterfall, hyper..) or agree with customer about contract type ? how's the contract in Agile to make sure there's in budget ? How can make the contract suitable with Agile method Saving Changes...
It really depends on the level of detail in the contract as well as the nature of the work itself. In some cases, a contract is set before the delivery approach is defined and the contract terms might end up constraining the delivery approach. In other cases, before the contract is signed, the team has a chance to explore the project's context to determine the best approach and that forms the basis for the contract.
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Haneen, we normally agree on the approach before we finalize the contract as the approach might trigger some additional supplementary conditions to be added to the contract. Saving Changes...
Project Manager| AWR Development (BD) Ltd. Cox's Bazer , Bangladesh
Haneen,
i am totally agree with Rami
it is our standard practice to reach a mutual agreement on the proposed approach before we finalize the contract. This step is crucial because the chosen approach could lead to the need for additional supplementary conditions that should be clearly outlined within the contract. By discussing and agreeing on the approach in advance, we can ensure that all necessary terms are included and avoid any potential misunderstandings later on.
When I create estimates used to base contracts, I assume a preferred delivery approach. That makes the difference between things like a very high priority and short flow project or work that can be more easily added to the pile of other work.
In a prior jobs however, I was handed projects from Sales who would estimate a project based on who knows what. The contract ink has already dried and the delivery approach is now my problem.
When given the choice, I always prefer to pick the approach I will have to live with before I estimate the cost and duration. Saving Changes...
Haneen AlHaddadFunctional Manager| Squareone TechnologiesAmman, AM, Jordan
Thanks all for the very useful answer.
So, as recommended the project manager should be engaged in presales activity to understand the product requirements and customer requirements to determine the approach before contract. My question now, what's the recommendation for Agile contract to avoid over budget... ? Saving Changes...
Project & PMO Manager | Research & Enterprise Mentor| GFB HoldingSouth America, Brazil
In the initial stage of a project, determining the best approach—such as Agile, Waterfall, or a hybrid method—is crucial, as it aligns with the project's nature and the customer's understanding of uncertainty. This decision should be made in conjunction with agreeing on the contract type, as both are interdependent. For Agile projects, contracts should be flexible to accommodate iterative development and changing requirements. A common Agile contract type is the "Time and Materials" contract, which allows for adaptability within a set budget by focusing on delivering value through continuous customer collaboration and prioritizing deliverables. To make the contract suitable for Agile, it should include clauses that allow scope adjustments, iterative milestones, and regular budget reviews to ensure that the project remains within financial constraints while delivering the desired outcomes. This approach ensures that both parties maintain a mutual understanding and agreement on deliverables, timeframes, and financial commitments, aligning with the dynamic nature of Agile methodologies.
You *must* determine the approach first, because this dictates the contract type. The Triple Constraint underlies contracts in traditional projects, and is largely irrelevant in nonpredictive projects. I have a detailed description of the Agile Time & Materials Contract on my website, but a community rule (that I strongly disagree with) won't let me link to it. Here is the key difference from a standard capped T&M contract: "the agile version reflects how much the vendor will be paid per period of time plus how supply and material expenses will be repaid. But in this case:
-"Scope is only described as a goal statement and undated objectives within the contract or statement of work.
-"A high level of customer involvement per the Agile Manifesto is prescribed, to:
--"Ensure expectations align with outcomes, nearly guaranteeing customer satisfaction.
--"Ease customer fears by giving them a high sense of control.
-"Easy “off ramps” are provided, based on the assumption that both parties are better off moving on if the project isn’t working out." Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
Let me say, with all my due respect, you are mixing things. With the client you have to agree why/what/how/when/how much it cost to deliver the value they are expecting to get in terms on the needs the client has. You have to keep all that things as abstract as possible because the information you have at this time and the key thing is to put clear what you need for the client to deliver value. That´s all. Saving Changes...
Product Operations Program ManagerBarcelona, Cataluña, Spain
You could also consider a rolling wave approach and provide a detailed delivery approach for the first wave and an estimation for the subsequent waves, which will be further refined when more clarity is gained. This is particularly useful for projects with significant unknowns that become less "unknown" as project progresses (e.g. R&D projects). Saving Changes...
I consider that the contract should be established in parallel with the project approach. You discuss the contract terms with the client, determining scope, cost, and timeline; and based on the client's requirements and the type of product or service to be delivered, the project manager should recommend the project approach (waterfall, cascade, or hybrid). The agreed approach would be stated in the contract signed. Saving Changes...
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