Template: Contracting for Agile

This document is a template contract for Agile engagements (from the U.K. government).

This is a solid basis for an Agile contract, including a definition of price per story point (although story points alone are not a basis for comparison of vendors at the RFP stage).

Bear in mind that the template does not sufficiently spell out the expectations of how the project will be run and the roles of the vendor staff versus the client staff in the context of an Agile project. You may wish to add this information.

Some specific points:

  • Section 10.1: “The Supplier shall provide the Customer with a report of its performance for the applicable Sprint(s) at each Retrospective during the Delivery Stage …”  This is a modification of the common usage of the term “Retrospective."  Normally, the Retrospective should be an introspective look by each team at lessons learned and opportunities for improvement. The Customer is usually excluded. However, the U.K. Government has decided to arbitrarily change the purposes of these activities in its definitions, so the commonly used “Review” has become “Showcase” (which implies only the demo element of the Review) and the commonly used “Retrospective” has been redefined to cover accountability of the team to the customer rather than making the team accountable to themselves. 
  • Section 18.1: This template advocates uploading to the repository only at the end of the sprint, but DCG advocates that this should be performed daily.
  • Sections 38.1–38.3: While there is a nod in the direction of flexibility of termination being appropriate in an Agile contract, a simple statement that contracts can be cancelled at the end of any sprint – maybe with a concession that notice of one sprint will be given - would be sufficient. Section 38.2 is formula-driven not event-driven.

If you would like a copy of the Word version of this template for your use, please contact us.


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