Visit our online hub for all the information you need on the new JCT Target Cost Contract.
The JCT Target Cost Contract 2024 was released on 25 June. The contract family consists of the following documents:
- Target Cost Contract 2024 (TCC 2024)
- Target Cost Sub-Contract Agreement 2024 (TCCSub/A 2024)
- Target Cost Sub-Contract Conditions 2024 (TCCSub/C 2024)
- Target Cost Contract Guide 2024 (TCC/G 2024)
- Target Cost Sub-Contract Guide 2024 (TCCSub/G 2024)
The JCT Target Cost Contract is designed for construction projects where the Employer wishes to incentivise the Contractor, and which is achieved through the setting of a Target Cost and the provision of sharing arrangements (a pain and gain mechanism) in relation to actual allowable costs incurred. Parties are encouraged to foster collaboration and working practices that maximise opportunities to make gain savings, thereby reducing the overall costs of a project.
The Target Cost Contract Hub contains a range of information and guidance to assist users in working with and understanding the contract.
- An introductory article explaining the key elements of the contract and how the payment and risk/reward arrangements work.
- Worked Examples providing more detailed text on how the various costs and payment calculations are made.
- Supporting video commentaries on the Worked Examples providing enhanced guidance.
Keep checking the TCC Hub for more updates coming soon – more content is due to be added including further information and links to resources.