In 30 seconds
- Contracts set the frame; collaboration gets the right product built.
- Customers see and steer the work often, not just at sign-off.
- Agile contracts can still be fixed-price; scope is what flexes.
What it means
Nobody knows every requirement at the start. Instead of trying to pin them all down in a contract, agile teams keep the customer involved throughout, showing working product at every Sprint Review and adjusting based on feedback. It's the third of the four agile values.
Signs of imbalance
- Change requests argued over clause by clause
- The customer first sees the product at acceptance testing
- "That's not in scope" used to end conversations
Contracts that support collaboration
- Fixed time and cost, flexible scope: the customer reorders priorities each sprint.
- Time and materials with a cap, reviewed every few sprints.
- Exit clauses that let either side stop after any sprint.
Myth vs reality
Myth · Agile means no contracts.
Reality · Contracts remain; they're designed to allow change.
Myth · Collaboration means doing whatever the customer asks.
Reality · It means deciding together, with honest trade-offs.
Myth · Customers don't have time to collaborate.
Reality · A short review every couple of weeks is usually enough.
FAQ
Who represents the customer in Scrum?
The Product Owner, who works closely with real customers and users.
Can government projects work this way?
Yes; many public bodies now use outcome-based or capped agile contracts.
What if the customer won't engage?
Make reviews short and useful, and show the cost of decisions made without them.