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An external web developer is to be contracted to create the new coffee bar insurance area on the existing web site. The chosen web developer will only agree to work on a 'fixed price for a fixed specification' contract. What action should the Project Manager take?
Correct Answer: D
Dividing the work into smaller, well-defined component parts is a strategic approach when dealing with fixed-price contracts within an Agile framework. This method allows for greater flexibility and adaptability, as each component can be specified in detail, making it clear what the external web developer is responsible for delivering. This approach aligns with Agile principles by enabling incremental development and delivery, allowing for adjustments and refinements to be made as the project progresses and more information becomes available. References: In Agile Project Management, particularly when incorporating external resources or contractors, breaking down the project into smaller, manageable parts is a common practice. This not only facilitates better control and tracking of progress but also ensures that the project remains adaptable, with the capacity to respond to changes in requirements or priorities. This approach is in line with Agile methodologies that emphasize iterative development, customer collaboration, and responding to change over following a fixed plan.