Wednesday 22 April 2015

Fix bid (Agile) project. Are you ready?


What is a fix bid (Agile) project?

This is a general understanding that fix bid project means fix price, fix time, fix scope and obviously with quality. This requires detailed and accurate requirements. ‘The IRON TRIANGLE’…
However a ‘Fix bid AGILE project’ is bit different from the above understanding. How? We will see it in the later part.

Now let us understand why customers ask for fix bid project?

·         Many customers do not have significant idea, what agile means. They think that from an agile project they will get iterative deliveries hence more control on project and less surprises at later stages.
·         Customers do not want to take any financial risk.
·         Customers (generally government institutions) need to choose between bids. They have to stick with fix bid project which also needs to be agile.
·         Lack of trust between Clients and Contractor. And this is obvious as every time the projects are not from the same clients or from the clients which know enough about contractor prior to the project.

What benefits a contractor may anticipate from fix bid project?

Not all the time but at times contractor also gets benefited from fix bid agile projects.
·         A contractor can predict his cost and benefits.
·         Planning in a fixed price project is easier. As cost and benefits are predicted in advance, the other planning as scheduling and resourcing becomes easier. Contractor can focus on other projects easily as fix bid projects scope and timelines also are fixed.
·         Generally this happens when the domain is well known to contractor. If the contractor is selling its product then the expertise is already with contractor. Say, if we are selling our own product (company’s product) then we already have enough expertise and SMEs with us. We know almost all features/functions in advance. Yes, there may be a few customization needed as per the client’s requirement. If planned well, we can go ahead with fix bid agile projects.

What should be the way of collaboration between client and contractor?

·         First of all client should know what Agile means and how an agile project will be developed and delivered.
·         Preferably a Product owner from client should be available, if not, contractor may provide agile training to a SME (Subject Matter Expert) - a representative from client. If this is not possible, offer client a proxy Product owner.

Fix bid AGILE project

In most of the cases client is more focused on TIME (Deadlines) and BUDGET. So the only option left flexible is SCOPE. Though clients forces for fix SCOPE also but in Agile project the scope is drilled down from VISION to Stories (even more up to tasks). So once we discuss about the scope, we could provide client a range of Stories expected to be covered in the Fix Time and Fix Budget. Sometimes stories may still be in form of EPIC (Big story).
It had been debated many times that Product owner from client asks for inclusion of more and more stories in sprints. In such cases ScrumMater and the team can guide Product owner about the team’s capacity. In my opinion if the team (Product owner, ScrumMaster, Development team) is working in collaboration such things could be tackled easily. After all Product owner also works for success of product/project and he/she responsible for the same. :-)

How to deal with Change requests

Change is inevitable. Agile welcomes Changes and that is the essence of Agile. However in Fix bid it creates confusion.  Change is inevitable but BUDGET is fix :-).
The best way to deal with Change request is to drop comparatively less important user stories (equal story points which the change request have). Having fix bid project, it becomes tough to convince clients. If you could do that, go-ahead, get some more bucks from client.

More on how to judge importance of a user story can be found at:



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