Agile Agreement

Abstract

An agile agreement is a contract that exists between an agile organization and an agile supplier. While entering into contracts is not new, aligning supplier contracts with agile product development is a contemporary concept. A traditional supplier contract is a low-trust, command-and-control artifact that relies on milestones and deliverables to manage the contract and process payment. An agile agreement is different in that it requires a high-trust, iterative, and incremental approach to supplier management. An agile agreement defines the agile terms and conditions for both parties, the fixed product development time period, and the variable scope of work that the supplier will perform.