Kustannusplus

Kustannusplus, in Finnish usage, refers to a cost-plus pricing method where the selling price of a project or product is determined by adding a markup to the producer’s costs. The approach is commonly used in construction, engineering, and research projects, especially where costs are uncertain or difficult to estimate in advance. The markup may take the form of a fixed fee, a percentage of costs, or a combination, and can be subject to caps or incentive arrangements.

Typically, the cost base includes direct costs such as materials and labor, as well as indirect costs or overhead. The final price is the sum of these costs plus the agreed-upon profit or fee. Some variants separate the fee structure into cost-plus fixed fee (CPFF), cost-plus incentive fee (CPIF), or similar arrangements, which link part of the compensation to performance or cost control.

Kustannusplus is favored for its transparency and flexibility in negotiations, particularly when project scopes are evolving or costs are inherently uncertain. It can reduce adversarial bidding and provide a straightforward framework for reimbursing actual expenses while ensuring a contractor earns a predefined return. However, it may also encourage less cost discipline if incentives to control expenses are weak, and it does not automatically align price with market value or outcome quality. Effective implementation typically requires detailed cost accounting, auditing, and clear contract terms on cost definitions and management of overruns.