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CAPM Practice: Explain when it is appropriate to use an adaptive approach

Question 57 of 61 in Explain when it is appropriate to use an adaptive approach

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A project uses adaptive methods but the customer wants a fixed price contract for the entire project. How should this tension be resolved?
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Correct answer: Use a fixed price for a defined scope of early iterations or an initial release, with adaptive flexibility for subsequent phases — or use a time-and-materials contract with a budget cap

Explanation

Fixed price and adaptive approaches can coexist with thoughtful contract structuring. Options include: Fixed price for a defined MVP or first release (well-defined scope, adaptive delivery); time-and-materials with a not-to-exceed cap (controls budget, allows adaptive scope); fixed price per sprint (each sprint has fixed cost, scope varies). The key is aligning the contract structure with adaptive value delivery while managing the customer's need for budget certainty.

Key Concept

This question covers Explain when it is appropriate to use an adaptive approach under Explain when it is appropriate to use an adaptive approach (Agile Frameworks/Methodologies).

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