JCT will use the occasion of its annual Construction Industry Parliamentary Reception, to be held on Friday, 13 June 2025, to celebrate the introduction of the JCT Target Cost Contract to the JCT suite, and preview information resources about the contract ahead of its release in the summer.
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 will comprise 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 renumeration 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.
A range of online resources, including information articles, instructional video, worked examples, and more are being prepared to assist users in using the new contract. More information about the planned resources will be revealed at the reception.
JCT’s Construction Industry Parliamentary Reception is an exclusive occasion for its members and guests, celebrating the achievements of JCT and the wider industry, raising awareness of important issues or new developments, and an opportunity to thank those professionals involved in making JCT a success.
JCT chair, Karen Kirkham, said:
“We are looking forward, once again, to welcoming our members and guests to the JCT Construction Industry Parliamentary Reception.
“The last 12 months have been an exciting time for JCT with the release of the 2024 suite of contracts, and this year we reach the finish line of that journey with the release of our brand new contract family, the JCT Target Cost Contract.
“This event will acknowledge the incredible amount of hard work from our members that has gone in to produce these new contract documents, and we are also excited to share some information about the resources that will be available, once the contract goes live, for users getting to grips with the concept of Target Cost for the first time.”