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Last post 06:23 pm August 29, 2016 by Timothy Baffa
1 reply
08:22 pm August 28, 2016

I have handled few projects using Waterfall and V models. As per initial agreement, the payment to be done by customer at the end of every phase i.e after completion of Requirements analysis (SRS), Design, Development, SIT, UAT (Acceptance test) and Deployment.

My question is ... how to define these payment milestones for Agile FP projects. Is it based on the total number of sprints... ie... if I have total 10 sprints, can I ask customer to pay 4 equal installments (each payment after completion 2-3 sprints).

What is the industry best practice. I have to decide asap.. can anyone please quickly answer...

06:23 pm August 29, 2016


It seems your customer was originally paying installments that were tied to waterfall phases but not tied to delivery of value.

It seems this is a good opportunity to educate the customer around the benefits of an Agile approach, and paying for actual value delivered.

That being said, I can make an assumption that there is a list of functionality tied to the fixed-price bid. If so, then perhaps associate customer payment with delivered functionality? I would not necessarily tie customer payments to the # of sprints completed, since there is no guarantee that we know the # of sprints required, or that the completed sprints delivered the functionality identified.

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