JCT Target Cost Contract

The JCT Target Cost Contract (TCC) is for use where parties wish to undertake works based on the establishment of an initial Target Cost with the inclusion of different sharing arrangements to provide an incentive to the contractor.

It offers tried and tested wording, given that the core clauses align with the other contracts in the JCT suite. However, as with all contracts there may be a need to amend this contract to suit a particular project. The employer will rarely use Target Cost in its purest form and will instead specify their needs in considerable detail in the employer's requirements.

Take care to amend only what is necessary and consider whether similar projects could have encountered the same issues. It is advisable to check whether an amendment already exists that meets the particular requirement, although given that this is a newly published contract, there is unlikely to be anything available immediately.

The JCT Target Cost Contract was published for the first time in June 2025, but retains the ‘2024’ edition date to align with the JCT 2024 suite. It enables users, for the first time, to have a JCT contract with Target Cost provisions to sit alongside the NEC suite of similar form.

This section is maintained by Steven Thompson of RICS.