Breathing new life into the waterfall model

Due diligence-it's a concept that savvy investors and investment bankers understand. Before you invest in something, spend the time to fully understand the people and the business. Only proceed after you're convinced that everything is okay. The author discusses a form of due diligence that can be applied when software development work is contracted. He argues that both the contractor and the customer should shape their interaction in stages, so that risk is reduced and requirements stability achieved before either party commits large sums of money.