Driving sustainable Application Development success through data-driven insights.
OUTPUT-BASED CONTRACTING
of Agile Application Development Teams
From paying vendors 'to show up' to paying vendors 'to deliver value!'
From Hours to Output
Move your agile supplier from time & materials to an output-based contract, step by step, with a trial period before any money depends on it.
Book a 30-minute introduction call:
Paying for hours tells you nothing about what you get
Under a time & materials contract you pay for hours, whatever is delivered. The risk sits with you, and you have no objective view of productivity. Velocity and story points don't solve that: they can't be compared between teams and they were never meant as financial metrics.
Output-based contracting, as described in NPR 5333:2025, changes the basis of payment. Delivered functionality is measured objectively in the ISO/IEC standard for functional size measurement. You pay a fixed price per function point, and quality and satisfaction are measured alongside it, so efficiency can never come at the expense of quality.
Why most organizations don't make the switch
The model itself is rarely the problem. The transition is. The same concerns come up again and again:
"We have no historical data to base a price on."
"Our supplier will never agree to this."
"What if the numbers turn out wrong once the contract is running?"
"Procurement and legal will take forever."
Our approach is built around exactly these concerns. You never commit to more than the next step, every step delivers something useful on its own, and money only depends on the new model after both parties have seen it work.
The route: four steps, each with a clear result
Our commitment: if Step 1 shows that output-based contracting isn't a good fit for your situation, we tell you. You keep the baseline and the benchmark results, and you're under no obligation to continue.
Prefer to do it yourself?
Everything we use in Step 2 is also available as a template set in our shop:
NPR 5333 Output-Based Contracting Toolkit (€595). Six editable documents: market consultation, RFI, RFP, scoring workbook and instructions, and a Master Services Agreement with 9 annexes.
Toolkit + Expert Review Session (€1,950). The same set, plus a 2-hour session with Harold to apply it to your own situation. [Link to shop]
If you hire us within 3 months of buying, the full purchase price is deducted from Step 1.
If you hire us within 3 months of buying, the full purchase price is deducted from Step 1. Want the background first? Read the book Output-based Contracting of Agile Application Development Teams (€29).
Not sure where to start?
Just exploring? Start with the Readiness Scan (€197).
Have your own team and procurement support? Get the Toolkit, with or without an expert review session.
Want a result without the risk of getting it wrong? Book an introduction and we'll discuss Steps 1 and 2.
Book a 30-minute introduction with Harold
Who you'll work with
Drs. Harold van Heeringen, founder of AgileBenchmark, has more than 25 years of experience in software measurement, estimation and benchmarking. He:
contributed to NPR 5333 from the start;
is President of Nesma (the Dutch software metrics association);
is a board member of ISBSG (the International Software Benchmarking Standards Group) and former President.
AgileBenchmark is independent: we don't deliver software ourselves, so we have no stake in either side's numbers. Our measurement and benchmarking work has been used by organisations such as ARAG, Turkcell, Eneco, Coöperatie DELA and a Dutch government ministry. → See our case studies
Frequently asked questions
Our supplier will resist. Does this still work?
Usually better than expected. The trial period in Step 2 lets the supplier see how the measurement works before any money depends on it. A good supplier benefits too: productivity becomes visible and can be rewarded.
We have no function point data. Is that a problem?
No. In Step 1 we reconstruct the baseline by sizing functionality delivered in past releases. Nesma Easy Functional Sizing (ISO/IEC 25986:2026) was designed to keep that effort low.
We're in the middle of a running contract. Do we have to wait until it expires?
No. Step 2 can result in an addendum to your current contract instead of a new tender.
We're a public organisation. Does this fit a tender procedure?
Yes. The contract set includes a market consultation, RFI and RFP written for the Dutch/EU context, including notes on the Aanbestedingswet. Your own procurement and legal advisers remain responsible for the procedure.
Is this legal advice?
No. We provide the metrics, measurement and pricing mechanisms. The contract should always be reviewed by your own legal adviser.
Book your 30-minute introduction meeting with Harold here:
