kustannusvauhtia

Kustannusvauhtia, literally cost velocity, is a Finnish term used in economics and project management to describe the phenomenon where costs begin to rise at an accelerating pace relative to initial estimates. The concept focuses on the rate of change in costs over time rather than absolute levels, and is used to discuss budgeting risk and cost escalations in projects, programs, and procurement.

Causes and contexts: common drivers include scope creep, underestimation of complexity, price inflation, currency fluctuations, delays in execution, and supply chain disruptions. It is often observed in construction, IT projects, and public sector procurements where initial budgets do not keep pace with changing market conditions.

Measurement and management: kustannusvauhtia can be assessed by comparing cost trajectories with planned baselines, calculating cost growth rates, and monitoring variances over time. Effective responses include early risk assessment, robust change control, contingency planning, staged funding, and procurement strategies that lock prices or use escalation clauses. The concept is closely related to, but distinct from, cost overruns, as it emphasizes the tempo of cost increase rather than final deviation alone. See also: cost overrun, inflation, scope creep, project management.