This paper outlines a joint industry-academia research project in the area of method engineering. Founded in practical experiences and emerging theoretical constructs, the project aims at developing theories, methods and tools to support the adaptation, integration and construction of method components for flexible configuration of system development methods. By explicating the possibilities of using method's inherent rationale, the possibilities to adopt rigorous methods (such as the Rational Unified Process) to comply with increasing demands of flexibility will be exploited. The paper also addresses the approach to technology transfer adopted in the project, viewing the project as existing in two different intellectual spheres, one academic and one industrial. The two spheres overlap in a space of conceptualization and interpretation shared by the practitioners and academic researchers involved. This way the project adopts an iterative process of reflection and application, generating knowledge directly applicable in industry as well as knowledge of theoretical and scientific importance.