Project bid on iteration basis

Abstract

A different way of bidding for contract work is introduced and discussed in this paper. The bid is priced on a per iteration basis. The throughput goal of each iteration is estimated in story point format based on projected load factor, planned work days, and staff plan. The development team is responsible for achieving the target throughput goal of each iteration. Though pricing bid this way gains client trust quickly, key lesions are learnt and advice are given specifically on estimation, load factor projection, and client education. © Springer-Verlag Berlin Heidelberg 2007.