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. As this is a new JCT contract, this isurv section focuses on the relevant aspects that differ from the other members of the JCT suite. Accordingly, this isurv section does not contain commentary on provisions that are common to all JCT contracts.

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.