I did a coaching and training last week and the most important problem was the question – How to handle fix price, fix date contracts?
“The “Money for Nothing” strategy works when customers want fixed price estimates for the entire contract up front. The Agile contract allows termination of the contract early when the value of features drops below a ROI criteria. The contract allows the customer to save 80% of their remaining funds by giving the Agile vendor 20% of the remaining contract value in return driving the margins of an Agile contractor from 15-20% up to 50-80%.” – from the presentation of Jeff Sutherland Money for Nothing and Your Change for Free: Agile Contracts.
I was not there, but I have heard his arguments several times by doing trainings with Jeff.
Basically it is like Judo or Aikido – you use the strengths of you opponent to fight him. So accept a fix price, fix date contract. Run a good Scrum and make a huge amount of profit.
It links back to the fact – we do not sell Scrum, we deliver good software fast, which is reliable and predictable.
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