Contracts and models

1. Diego Pacheco
Software Architect | Agile Coach
@diego_pacheco

3. Fixed Price / Scope (Escopo/Preço Fechado)

4. 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

5. Pack of Hours (Pacote de Horas)

6. 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

7. Time and Materials

8. 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

9. Risk

10. 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

11. Diego Pacheco
Software Architect | Agile Coach
@diego_pacheco
Thanks !!!