apHarmony offers Agile Software Development services from our team of software architects, designers, and developers.  Although each Agile project is unique, our development framework offers an effective way to streamline costs and reduce time-to-market.

The primary question we are often asked is whether an Agile project be done on a fixed price basis.  Although stakeholders would often like flexibility in the development costs, straightforward project financials are an important component to getting the project approved by the necessary departments.

There are two ways to approach fixed price Agile projects.  Either approach requires trust and communication between the client and the developers, so if the developers do not have an absolutely clear understanding of the client’s challenges and goals, it would be best to utilize a more traditional development methodology and make change orders, if necessary.

The first approach to fixed-price Agile software development is to scope out the project for a period of time, define primary deliverables, and keep working until the project is complete and the key software goals are satisfied.  As such, the project is proposed as a “range”, and work is billed hourly, with weekly client reviews and discussions.  This approach can be effective as long as the primary deliverables don’t change significantly, in which case a contract addendum may need to be made to accommodate the changes.

The second approach to fixed-price Agile software is to split the project into general modules, and price each module separately.  As development continues, the client may pick-and-choose which modules he would like to implement by issuing a PO, at which point the developers will start implementing that part of the project.  In order to use this a-la-carte methodology, the development team needs to be good at estimating individual changes, and the client needs to have flexibility in their budget and approval of modules.

apHarmony has had success with both methods, and the approach depends on what is most convenient for the client.  For complex projects with changing requirements or groundbreaking technology, the first approach works better, while for more straightforward project the second approach is often satisfactory.

If you have any questions about an agile software development project, please feel free to give us a call at 630-855-7522.