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Agile ContractsLL.M. Juha IlolaTurku Agile Day27.2.2013Wednesday, May 15, 13
© Copyright Reaktor 2013legal guy @ Reaktorpreviously @ major law firm, Sulakedoing legal IT stuff since 2001Wednesday, Ma...
© Copyright Reaktor 2013Agenda1.Contracts and Lawyers2.Pitfalls of Waterfall3.Agile ContractsWednesday, May 15, 13
© Copyright Reaktor 20131. Contracts and LawyersWednesday, May 15, 13
© Copyright Reaktor 2013people really do hatelawyers.Wednesday, May 15, 13
© Copyright Reaktor 2013lawyerunnecessary complexityWednesday, May 15, 13
© Copyright Reaktor 2013drafting contracts is similarto writing code.Wednesday, May 15, 13
© Copyright Reaktor 2013a beautiful contract:a contract thatprovides the simplestpossible solution to enablethe purpose of...
© Copyright Reaktor 2013negotiation of collaborativecontracts should not beapproached as a zero-sumgame.Wednesday, May 15,...
© Copyright Reaktor 2013optimize contracts forsuccessful outcome, not forthe (imaginary) interests ofone party.Wednesday, ...
© Copyright Reaktor 2013current economic climatedoes not favor beautifulcontracts.nevertheless, such beauty isworth fighti...
© Copyright Reaktor 20132. Pitfalls of WaterfallWednesday, May 15, 13
© Copyright Reaktor 2013waterfall contract=fixed price + fixed scopeWednesday, May 15, 13
© Copyright Reaktor 2013“the Supplier will deliverto the Customer thesoftware described inAnnex 1 for EUR [price] by[deadl...
assumptions inthe contract dicatate whatwill be done, not real(discovered) needs.Wednesday, May 15, 13
© Copyright Reaktor 2013Change Managementthe Supplier will allowchange only if there isenough money on thetable.Wednesday,...
© Copyright Reaktor 2013Fixed priceencourages theSupplier to dominimum atmaximum price.Wednesday, May 15, 13
© Copyright Reaktor 2013The contract gives theCustomer illusion ofcontrol, but in factthe Supplier operatesas a black box ...
© Copyright Reaktor 20133. Agile ContractsWednesday, May 15, 13
© Copyright Reaktor 2013Risks of a software project are bestaddressed by using agile methods.Not with contract.Agile contr...
© Copyright Reaktor 2013EmpiricSpecifiedWednesday, May 15, 13
© Copyright Reaktor 2013BacklogSpecified in detailRecognized, requiredfunctionalitiesRelease 1Fuzzy ideasPriorityWednesday,...
© Copyright Reaktor 2013the object of an agilecontract should be theperformance of service(as opposed to delivery ofspecif...
© Copyright Reaktor 2013team members subjectto approval of theCustomer.the Customer has theright require thechange of a te...
© Copyright Reaktor 2013contents of theservices (i.e. backlog)are agreed inaccordance with theagile method.no separate cha...
© Copyright Reaktor 2013charged on time &material basis on thebasis of realizedhours / days.set max budget?charges are not...
© Copyright Reaktor 2013alternatively targetprice can be used.target price is notideal, as it requiresscope and changemana...
© Copyright Reaktor 2013Reaktor’s satisfactionguarantee:if the Customer feels thatReaktor has not performedwith satisfacto...
© Copyright Reaktor 2013indefinite termcontract with2 - 4 weeks’ noticeperiod.trial period at thebeginning of thecontract?...
© Copyright Reaktor 2013the Customer shouldreceive all rights orunlimited license tothe results of theservices.Wednesday, ...
© Copyright Reaktor 2013Thanks!... remember to further the beauty ofsimplicity when drafting contracts!Wednesday, May 15, 13
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Agile Contracts

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Presentation given at Turku Agile Day 2013.

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Transcript of "Agile Contracts"

  1. 1. Agile ContractsLL.M. Juha IlolaTurku Agile Day27.2.2013Wednesday, May 15, 13
  2. 2. © Copyright Reaktor 2013legal guy @ Reaktorpreviously @ major law firm, Sulakedoing legal IT stuff since 2001Wednesday, May 15, 13
  3. 3. © Copyright Reaktor 2013Agenda1.Contracts and Lawyers2.Pitfalls of Waterfall3.Agile ContractsWednesday, May 15, 13
  4. 4. © Copyright Reaktor 20131. Contracts and LawyersWednesday, May 15, 13
  5. 5. © Copyright Reaktor 2013people really do hatelawyers.Wednesday, May 15, 13
  6. 6. © Copyright Reaktor 2013lawyerunnecessary complexityWednesday, May 15, 13
  7. 7. © Copyright Reaktor 2013drafting contracts is similarto writing code.Wednesday, May 15, 13
  8. 8. © Copyright Reaktor 2013a beautiful contract:a contract thatprovides the simplestpossible solution to enablethe purpose of the contract.Wednesday, May 15, 13
  9. 9. © Copyright Reaktor 2013negotiation of collaborativecontracts should not beapproached as a zero-sumgame.Wednesday, May 15, 13
  10. 10. © Copyright Reaktor 2013optimize contracts forsuccessful outcome, not forthe (imaginary) interests ofone party.Wednesday, May 15, 13
  11. 11. © Copyright Reaktor 2013current economic climatedoes not favor beautifulcontracts.nevertheless, such beauty isworth fighting for.Wednesday, May 15, 13
  12. 12. © Copyright Reaktor 20132. Pitfalls of WaterfallWednesday, May 15, 13
  13. 13. © Copyright Reaktor 2013waterfall contract=fixed price + fixed scopeWednesday, May 15, 13
  14. 14. © Copyright Reaktor 2013“the Supplier will deliverto the Customer thesoftware described inAnnex 1 for EUR [price] by[deadline].”Wednesday, May 15, 13
  15. 15. assumptions inthe contract dicatate whatwill be done, not real(discovered) needs.Wednesday, May 15, 13
  16. 16. © Copyright Reaktor 2013Change Managementthe Supplier will allowchange only if there isenough money on thetable.Wednesday, May 15, 13
  17. 17. © Copyright Reaktor 2013Fixed priceencourages theSupplier to dominimum atmaximum price.Wednesday, May 15, 13
  18. 18. © Copyright Reaktor 2013The contract gives theCustomer illusion ofcontrol, but in factthe Supplier operatesas a black box andhas no incentives fortransparency.Wednesday, May 15, 13
  19. 19. © Copyright Reaktor 20133. Agile ContractsWednesday, May 15, 13
  20. 20. © Copyright Reaktor 2013Risks of a software project are bestaddressed by using agile methods.Not with contract.Agile contract should make it possibleto capitalize on the ability of agilemethods to provide the Customer withbest value for a given budget.Wednesday, May 15, 13
  21. 21. © Copyright Reaktor 2013EmpiricSpecifiedWednesday, May 15, 13
  22. 22. © Copyright Reaktor 2013BacklogSpecified in detailRecognized, requiredfunctionalitiesRelease 1Fuzzy ideasPriorityWednesday, May 15, 13
  23. 23. © Copyright Reaktor 2013the object of an agilecontract should be theperformance of service(as opposed to delivery ofspecified results).Wednesday, May 15, 13
  24. 24. © Copyright Reaktor 2013team members subjectto approval of theCustomer.the Customer has theright require thechange of a teammember at any time,for any reason.Wednesday, May 15, 13
  25. 25. © Copyright Reaktor 2013contents of theservices (i.e. backlog)are agreed inaccordance with theagile method.no separate changemanagement isnecessary.Wednesday, May 15, 13
  26. 26. © Copyright Reaktor 2013charged on time &material basis on thebasis of realizedhours / days.set max budget?charges are not tiedto the approval of theresults.Wednesday, May 15, 13
  27. 27. © Copyright Reaktor 2013alternatively targetprice can be used.target price is notideal, as it requiresscope and changemanagement.saved or overrunbudget should bedivided 50/50.Wednesday, May 15, 13
  28. 28. © Copyright Reaktor 2013Reaktor’s satisfactionguarantee:if the Customer feels thatReaktor has not performedwith satisfactory level, theymay notify Reaktor andreceive discount of chargesrelating to last sprint - noquestions asked.Wednesday, May 15, 13
  29. 29. © Copyright Reaktor 2013indefinite termcontract with2 - 4 weeks’ noticeperiod.trial period at thebeginning of thecontract?Wednesday, May 15, 13
  30. 30. © Copyright Reaktor 2013the Customer shouldreceive all rights orunlimited license tothe results of theservices.Wednesday, May 15, 13
  31. 31. © Copyright Reaktor 2013Thanks!... remember to further the beauty ofsimplicity when drafting contracts!Wednesday, May 15, 13
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