What Are Data Contracts and Why Do They Matter? - The Business Thinking Podcast #26

In this episode, Neil Strange and Alex Higgs unpack the buzz around data contracts—what they are, why they matter, and how to implement them in real-world data pipelines.

Whether you're dealing with broken data pipes, poor quality, or unclear ownership between systems, data contracts can help. This episode covers the basics, shares practical examples, and points to tools like dbt, as well as books by Andrew Jones and Chad Sanderson.

⏱️ Timestamps:
00:00 – Intro: Why talk about data contracts?
00:33 – What is a data contract (and why do we need them)?
01:47 – How are data contracts actually enforced?
02:20 – dbt’s approach to data contracts
03:13 – Governance: What happens when a contract is broken
03:43 – Preventative vs reactive data quality
04:52 – Data contracts vs API versioning
05:23 – Recommended reading: Andrew Jones & Chad Sanderson
05:58 – Using contracts in your architecture
06:16 – Are they overkill? When to start using them
06:33 – Lean thinking and early detection
07:03 – When to define data contracts in your pipeline
07:27 – Final thoughts and how to get involved

💬 Drop your thoughts in the comments. Agree, disagree, or want to go deeper? Let’s talk.

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