Abstract
In system development projects based on contracts such as System Integration, it is important to define the scope early and get agreement with the customer. On the other hand, iterative development is characterized with its advantage for late fix of requirement and architecture, therefore iterative development is regarded as unsuitable for contractual system development projects. This paper discuss about the considerations and focuses for applying iterative development in a contractual system development project, based on the Rational Unified Process (hereafter referred as RUP). RUP provides flexible guide in terms of project formality, but maintaining formality to establish agreements with the customer and to reduce risks of the contract, it is applicable and beneficial to a contractual system development project.
