Which contracts are suitable for the complex domain?
Which contracts are suitable for the complex domain?
Contracts are required to have better collaboration between customers and suppliers. On traditional contracts, the focus is on activities carried out by supplier and delivery of features but the focus should be on the real value which should bring more business.
If your contract impedes your collaboration, contracts should be changed. Flexible contracts really help in solving the traditional approach where the focus is on the outcome and business objective is the key.
In traditional contracts, there are long discussions which go quiet back and forth with a lengthy process and adds Cost of delay. Flexible contracts really help in solving the traditional approach by delivering value quickly.
They are also known as Minimal Viable Contracts which has very less information in-built but different modules can be added to current conditions of the product/project/services.
A flexible contract blends TnM (time and material) with the outcome delivered. It really helps supplier to reach an outcome as quickly as possible and also ensures customer on their business needs.
Flexible contracts do not provide any minute details on how to achieve it and it honors the term of the contract as well. Contracts are really generic, not specific to any industry, domain or sector. It helps in creating shared goals between customer and supplier.
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