The interesting thing about doing fixed time, fixed price agile development is that it’s just agile development turned out to 11. All the same practices that you should do when doing any flavor agile, but usually don’t are critical to working fixed price. Probably the key practices to follow are: tracking velocity, scope management and multi-sprint strategic planning.
Scope management is the second most important part of doing successful fixed time fixed price development, or any development for that matter. Scope is essentially the “definition of done” for the business process.
The definition of done for a task is defined by the team as incorporating certain things: unit tests, integration tests, documentation or whatever. When all the criteria for “Done” are met, the task is done. Scope is the same sort of thing, just for the entire project. When all the things that are in scope are done, the project is done.
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