Cost Plus Plan

$x / month

  • Total transparency of resources and costs
  • Customer pays for the resources employed and the costs incurred
  • Contract can be set up without a detailed specification of the services required and detailed data
  • Increases the number of contractors prepared to quote
  • Can be difficult to require the contractor to control costs and improve productivity
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Activity Based Plan

$xxx / month

  • Usually simple to operate providing data is available
  • Prices linked to appropriate measures to determine inflationary increases
  • Allows for some changes in the traffic profile
  • Can work well for transport using a combination of fixed and cost per mile charges
  • Will require careful analysis to ensure that productivity measures are workable
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