Kustannuskorvausmenetelmä

Kustannuskorvausmenetelmä, often translated as cost reimbursement method, refers to a pricing or compensation strategy where one party is reimbursed for the actual costs incurred in performing a service or producing a good, plus an agreed-upon profit margin or fee. This method is commonly employed in contractual agreements, particularly when the scope of work is uncertain or subject to change, or when the exact costs cannot be determined in advance.

The core principle of the kustannuskorvausmenetelmä is transparency regarding expenditures. The party incurring the costs must typically provide detailed documentation, such as invoices and receipts, to substantiate their claims for reimbursement. This allows the other party to verify the expenses and ensure they are reasonable and directly related to the agreed-upon project or service.

There are variations within this method. Cost-plus-fixed-fee (CPFF) involves reimbursement of costs plus a predetermined, fixed profit. Cost-plus-incentive-fee (CPIF) includes a profit that is adjusted based on whether certain performance targets are met. Cost-plus-award-fee (CPAF) offers a base fee plus an award fee determined by the customer's subjective assessment of performance.

The kustannuskorvausmenetelmä is often used in industries like construction, government contracting, and research and development, where innovation or unforeseen challenges can lead to fluctuating costs. While it offers flexibility and can incentivize contractors to undertake complex or risky projects, it also carries the risk of cost overruns if not managed effectively through careful oversight and clear contractual terms.