Story time: Once upon a time, in a far far away land, a new project contract was signed. Congratulations! Mr. Client (a huge enterprise) agrees to pay the project team such and such gold coins for building a world class, enterprise level software solution. The big scope items were outlined in the statement of work was signed and a FIXED PRICE has been agreed on. The team, all agile experts, started diving into the requirements and begun building the product backlog.
A short time goes by, the backlog of work items become clearer and clearer and our team realizes that there is no way that they can deliver all the scope within the fixed budget – BIG PROBLEM!