HW 23: Chapter 22

22.6: Fixed-price contracts, where the contractor bids a fixed price to complete a system development, may be used to move project risk from client to contractor. If anything goes wrong, the contractor has to pay. Suggest how the use of such contracts may increase the likelihood that product risks will arise.

Risk monitoring would be entirely up to the contractor.  This would be difficult because they don't have the information that the client does.  They may not be able to effectively check whether the client's assumptions about the product, process, and business risks have changed.  Taking such a hands-off approach to development places the responsibility of the project into another team's hands, which can be risky in itself due to the fact that they didn't come up with the idea.  If the design is not perfectly clear, they may do something differently than what the desired outcome actually was.  If you have several contracts for different components of a system, they might have issues merging with each other.  


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