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Charging for Agile Project


Not sure if this is a valid question for Experts Exchange...

My team usually charge customers on a fixed price waterfall basis. More and more customers are asking us to work in an agile manner. Notwithstanding the fact that we'll need to train up on how to work in a successful agile manner, we're not sure how the billing would work.

Our customers very much like our fixed price approach as it gives them certainty for their budgets. But without a clear signed off Requirements Brief up front, we can't continue with a fixed price model can we?

One current client started a fixed price waterfall project and now wants to move to "agile" - i.e. they are disorganised and want to drip feed info to us over a longer period of time. By changing the phasing of deliverables (it was 1 phase now they want 2 or 3). We would normally charge extra to split a 1 phase project into 2 phases as we have more setup and testing etc across 2 phases.

So the key question is this I think: are all agile projects charged on a Time & Materials basis, or is it possible to do a fixed price agile project? The only way that I could think of doing it would be to say "you are paying for xx days and you can use them up as and when you want."

Thanks for your help!
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