Previously, we said Agile projects work best in the “Time and Materials” contract world and not fixed price. Why? Before we can explore this in more depth, let’s first look at three of the basic contract types mentioned in the Version Six PMBOK® Guide (pp. 471–472) that students need to know for the PMP® Exam, which include
• Firm fixed price (FFP)
• Cost-reimbursable (CR; also known as “Cost Plus”)
• Time & Materials (T&M)
• Fixed-price Contracts: Overview: In the fixed price world, the vendor bids a fixed price for the deliverables defined in the Statement of Work (SOW) and is responsible for any cost overruns, if necessary, ...