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Contracts and models


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Contracts and models

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Contracts and models

  1. 1. Diego Pacheco Software Architect | Agile Coach @diego_pacheco
  2. 2. Fixed Price / Scope (Escopo/Preço Fechado)
  3. 3. Fixed Price / Scope (Escopo/Preço Fechado) • Know the Price of the contract • Visibility (when it ends, how much it cost, who is involved). • Since you don`t trust the vendor is a good form of “protect the investment” • Easy to sell to the CEO / CFO / Finantial departament because of the buy process. • Easy to work with budget structure • “Sensation” of Less Risks and more security, but is not true acctualy. • Less Quality (Often sacrifices tests) • Cost more money (Risk, Buffers, etc...) • You can`t change (cost it more to change it) • Leads to Waterfall software development • Demotivates the team, demanges the morale, since you will have comand and control. • Leads to point-finger conversation about time and resources(micro-management). • Setup bad behaviours, Make hard to trust in people. Slow due negociations
  4. 4. Pack of Hours (Pacote de Horas)
  5. 5. Pack of Hours(Pacote de Horas) • Flexibility (You can change) • Less expensive than Fixed Scope model • More Quality, tests happen and you can prioritise what todo and what delay • Create a better system-work-env since you dont need have battles for price/scope all the time • Speed since you dont need to negotiate every single step. • You know when you budget/sow is running low or close. • Change too much and get nothing(Scope Creep – Task Swtching hell) • Could lead to spend more money and deliver nothing or so little. • Needs way more trust on the vendor
  6. 6. Time and Materials
  7. 7. Time and Materials(Hora Corrida) • Flexibility • Speed • You can stop when ever you want • Fixed cost (cadence) • Better system-env avoid dirty negociations • More Quality • No extra payment for changes • Hard to lead to BDUF and Waterfall • Dont get trap by Guestimations • Simple to work and deliver / change • Could lead to Micro-management • Could lead to no deliver • Could lead to too many changes • Could lead to lack of trust if no visibility • Needs more Trust and deliver • Pay for hours not for delivery
  8. 8. Risk
  9. 9. Risk & Reward(Fee + Bonus) • You share the risk with vendor • Cheaper on dev, expensivier on Sucess • You endup having more enggament • Hard to leave to waterfall • You pay for deliver not for man/hours • You share the risk with Customer • Expensivier on dev, Cheaper on Sucess • You endup having more enggament • Hard to leave to waterfall • Could Hard to add/remove people
  10. 10. Diego Pacheco Software Architect | Agile Coach @diego_pacheco Thanks !!!