Ontology is defined as an explicit specification of a shared conceptualization. Currently, ontology is used in semantic web, information retrieval, artificial intelligence, information systems, knowledge management, etc. The development of ontology involves a structural and logical complexity that is comparable to the development of software artifacts. Therefore, ontology building requires a methodology to ensure its reliability. In this context, there are several methodologies proposed for building ontologies. However, most of the existing methodologies failed to provide sufficient details for the activities and techniques employed in them with a defined ontology lifecycle. To build ontologies that are reliable, long lived and continually adapted, the ontology engineering (OE) should be supported by the software engineering (OE). But, SE was not initially meant to support the development of software artifacts such as ontologies. There is a significant gap between them in terms of popularity and maturity level. The aim of this paper is to bridge this gap by proposing an Agile Methodology for Ontology Development (AMOD). AMOD adopts the agile principles and practices in the ontology development. The final framework of AMOD fits the various ontology activities into the phases of the Scrum agile methodology. It has three phases: pre-game, development and post-game. AMOD was applied to develop ontology for software project time management. Additionally, a compliance analysis of different ontology methodologies with respect to the IEEE Standard was made. Results showed that AMOD resulted in 56% satisfaction for IEEE standard processes. This resembles 22% enhancement in the satisfaction against the other methodologies.