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 Contract 2024 Guide (TCC/G) is a comprehensive guide to accompany the Target Cost Contract 2024 (TCC) and features an explanation of the Agreement (Recitals, Articles, Contract Particulars, Attestation) and Conditions (Sections, Clauses and Schedules).
