Agile Projects, Appendix: Risk and Profit Sharing

This Annex provides a model for risk and profit sharing in Agile projects with the aim of reducing the risk of the need for an extension of the Contract (Change of Contract). The Annex is intended to be used together with the General Conditions. The Annex does not prevent the parties from agreeing on other pricing models, e.g. per Time Box or possible Release.

The Risk and Profit-Sharing Schedule shall become an appendix to the Agreement if the parties have specifically agreed to this. In the event of any conflict between the General Provisions and this schedule, the provisions of this schedule shall take precedence.

A prerequisite for the use of this appendix is that the parties to the Assignment Plan have specified the Requirements. Furthermore, the parties must have agreed on the level of the reduction in the hourly fee when applying paragraph 2 in the event of an extension of the Assignment. If the supplier is to be entitled to compensation when the Requirements have been met upon early termination of the Assignment pursuant to paragraph 3 (Profit Compensation), the level of compensation must be agreed upon for the application of paragraph 3. If the parties have agreed on a Target Price, the risk and profit sharing pursuant to paragraphs 2 and 3 shall be attributed solely to the Target Price.