Georg Gell wrote:
> Lukas Kahwe Smith schrieb:
>> Georg Gell wrote:
>>
>> Well in order to really leverage the benefits from agile development, 
>> one must really build a trust relationship with the client. Otherwise 
>> you do not benefit from throwing out things not deemed useful during 
>> prototyping etc. All in all the entire fixed price model does not really 
>> apply anymore.
> 
> Do you really have many clients that pay you per hour just trusting you?

Sure, I have some projects that are paid per hour/day. But sure most 
projects are fixed price.

>> Basically you define a budget, you define an initial scope and you keep 
>> your client in the loop. Its the PM's just to ensure that the must 
>> have's will always fit in the budget, even as you add new features and 
>> throw out others. I suggest keeping a wiki that is updated immediately 
>> as the specs evolve.
> 
> Just wondering how many projects exist that have more budget than just
> for the bare must-haves? I should definitely get a dot com bubble
> company as a client ;-)

Most projects have a few nice to haves. But the key point is that even 
must haves can change during an agile project.

>> One key thing to state in the contract and make very clear from the 
>> start is that client participation is key to the quality of the results. 
>> This means that the client has to budget much higher costs on his side, 
>> since he has to make sure that all the relevant people have sufficient 
>> amount of time to provide feedback.
> 
> Good point, what are the arguments to make my client want to have more
> budget on his side? They are all making overtime already.

Yes, due to the short feedback loops and the tight integration of the 
client they get the feature set of version 3.0 as their 1.0 release. 
Traditionally the client can only provide real world feedback after a 
x.0 release. So a 1.0 application never meets real world requirements. 
This is where agile methods shine.

regards,
Lukas

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