How does the end of an Agile contract work?

The end of a contract always involves risks. In the context of an Agile project, there are specific risks to be anticipated.

What about intellectual property at the end of the Agile contract?

The management of intellectual property can be thwarted by the end of the Agile contract.

First of all, if it is obvious that the ownership of the copyrights on the deliverables must be settled contractually, the end of the contract must be considered, so that it cannot call into question the balances defined in this respect. The question arises particularly for intermediate deliverables and the fate of the rights relating to them. In the absence of a specific clause, depending on how the contract is broken, the effects of an intellectual property rights assignment clause could be thwarted or even annihilated. The Agile contract must therefore expressly consider the various termination scenarios and their consequences.

Next, the conditions for exercising intellectual property rights must also be addressed. One thinks in particular of the delicate question of:

• access to the source codes of the intermediate deliverables and
• documentation.

Flexibility in the management of the Agile project should also be considered regarding the continuation of the project with other partners. Therefore, the Agile contract should include provisions for securing the exploitation of intellectual property rights on intermediate deliverables with third parties.

What are the exit procedures specific to Agile contracts?

The practice of Agile contracts requires the integration of flexibility in project exits.

Thus, since the execution of a project according to the Agile method is mainly based on a collaborative dynamic between the service provider and the client, a specific termination clause is often provided for when the collaborative process is blocked.

Another frequent case: the start of a project in Agile mode without a defined Product Backlog. In this case, the contract presents a higher level of risk. Indeed, the quality of the initial Product Backlog can condition the success of the subsequent development process. In this case, a kick-off sprint is often planned, with the objective of defining the Product Backlog version 1. In this case, it is strongly recommended to provide for a specific termination option, open to both parties, at the end of this initial sprint.

Because of its purpose, this sprint is a good test of both parties’ ability to adopt a collaborative approach to working together. In case of problems, the exit clause will allow:

• to consider corrections to the lack of collaboration or
• or simply to release the parties from the contract

if the imperfections noted do not lead to a consensus on the solutions to be deployed to remedy them.

During the execution of the contract, the collaborative process very frequently requires decisions to be made. Therefore, it is important to provide for the possibility of exit in case of:

• persistent divergences or
• prolonged stalemate in the project.