Agile fixed price projects – risk or opportunity?

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At first glance, the term “agile fixed price project” sounds like a contradiction in terms. Fixed price projects feature exact specifications, offering both sides clarity as to the services to be performed, the schedule, and the parties’ cooperation obligations. The contractor bears the risk – for which the client pays a commensurate markup in turn in some cases.

The term “agility” means that something is flexible and mobile, so it encompasses change as a characteristic. Agility is becoming increasingly popular, especially in the context of agile software development: Less red tape and more iterative cycles lead to the result that is truly needed at the end of the project.

Changes at a fixed price – how could that possibly turn out well?

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