The Target Cost Contract is a new addition to the JCT suite of contracts and forms part of the JCT 2024 Edition. The Target Cost Contract family comprises a main contract, sub-contract, and guides.
The contract is for use where parties wish to use target cost and difference sharing arrangements. Instead of a lump sum, the method of remuneration for the contractor is payment of an “Allowable Cost” of the Works together with a “Contract Fee” (a fixed sum or percentage) and, if applicable, a “Difference Share” as calculated in accordance with the Contract.
The Target Cost Sub-Contract 2024 Guide (TCCSub/G 2024) is a a comprehensive guide to accompany the Target Cost Sub-Contract (TCCSub 2024), featuring an explanation of sub-contracting under TCC, the Sub-Contract Agreement (Recitals, Articles, Sub-Contract Particulars, Attestation, Main Contract Information Schedule), and Sub-Contract Conditions (Sections, Clauses, and Schedules).
