The problem is not fixed price contracts. The problem is fixed scope contracts. This is what Mary Poppendieck thinks of agile fixed price contracts. Instead of a scope, we need is a short list of problems to be solved, not a bad amateur design of their solutions. Agile contracts leave solution design to software engineers and control projects through the regular delivery of measurable value.
In this video, Mary Poppendieck presents a view of software development as a design and delivery service, and the contracts which support a professional approach to software engineering.
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Video Producer: Agile Tour Vilnius