Agility Over Rigidity: Rethinking Fixed Contracts in Software Development

JP Holecka
3 min readNov 10, 2023

Martin Fowler, a veritable titan in the world of software with his brainchild, Thoughtworks, has been preaching a gospel that’s dear to my heart for ages. Drawing inspiration from his trailblazing insights, I’m here to spread the word a bit further. Why, you ask? Well, it’s simple: this perspective, though not as widespread or embraced as it deserves to be, is a game-changer. So, let’s dive in and explore this lesser-known yet immensely valuable viewpoint.

In the ever-shifting sands of software development, many firms fall for the mirage of fixed price and scope contracts. It’s an easy trap: the promise of financial certainty in an uncertain world. Yet, this path is fraught with pitfalls, often obscured by the surface appeal of cost control.

…software isn’t just about the dollars you shell out initially. It’s about value, the kind that should eclipse what you pay. Skimp on quality, and you’re not just losing the investment; you’re also missing out on the business benefits you were banking on.

Let’s tackle this head-on: software isn’t just about the dollars you shell out initially. It’s about value, the kind that should eclipse what you pay. Skimp on quality, and you’re not just losing the investment; you’re also missing out on the business benefits you were banking on. The real price tag isn’t just the cheque you write to the developers; it includes the time, effort, and dreams poured into the venture.

Now, fixed scope contracts. They sound great in theory but hinge on an almost mythical understanding of project requirements. Given the rarity of this deep knowledge, some savvy contractors lowball their initial bids, planning to cash in on the almost inevitable change requests. This tactic can hit your wallet hard and strain the client-contractor relationship to its limits.

Here’s where agile gets misunderstood. It’s often thought that agile and fixed price are like oil and water. But the real tension is between agile and fixed scope. Agile thrives on change, on evolving needs, which is pretty much the antithesis of a set-in-stone scope.

So, what’s the solution? Think of it as framing the contract with a budget and timeline, but keeping the scope on a flexible leash.

So, what’s the solution? Think of it as framing the contract with a budget and timeline, but keeping the scope on a flexible leash. It’s about collaboration, aiming to deliver the best within set boundaries. Being agile means being ready to pivot, offering clients an out if the project’s trajectory doesn’t sit right with them.

Enter ‘Scope Limbering.’ It’s a dance of sorts. You start with a fixed scope, then gently guide the client through the agile groove, easing the initial rigidity.

Enter ‘Scope Limbering.’ It’s a dance of sorts. You start with a fixed scope, then gently guide the client through the agile groove, easing the initial rigidity. When a client is fixed on a detailed scope, throw in a buffer to cover those “just in case” moments. This isn’t about pulling the wool over their eyes; it’s about trust and transparency, leading to a pricing model that bends without breaking.

This approach is about partnership, not confrontation. It’s a shift from quibbling over costs and scope changes to joining forces for the best possible outcome. This change in mindset benefits not only the immediate project but also polishes the industry’s image.

To wrap it up, the siren song of fixed price and scope in software development is tempting but deceptive. Embracing agility, with its focus on flexibility and partnership, steers us towards a more realistic and successful management of software projects. It acknowledges the fluid nature of development, emphasizing collaboration over rigidity, guiding companies through the labyrinth of software creation with a steadier hand.

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CEO, Founder of POWER SHiFTER Digital, Serial Entrepreneur, Noobie Knife Maker, & Leather Crafter with one foot in the future & the other in the analog past.