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In this Insight, first published in PLC, Partner Shy Jackson considers the JCT's Target Cost Contract, 2024 Edition (TCC 2024), a new addition to its 2024 Edition contract suite that reflects the wider industry trend towards collaborative contracting. Thr article explores how the TCC 2024, based on the JCT Design and Build Contract 2024 (DB 2024), seeks to align the commercial interests of employers and contractors through the target cost mechanism. It examines the key new concepts of Allowable Cost, the Contract Fee, and the Adjusted Target Cost and how these elements combine to calculate the Difference Share, the pain/gain mechanism that incentivises collaboration and cost efficiency. It explores the various choices parties must make regarding the contract's operation, such as the timing of the Difference Share calculation and the potential use of the associated Target Cost Sub-Contract, 2024 Edition (TCCSub 2024) and highlights the practical implications for parties, such as the need for open-book accounting and robust record-keeping. Further, it contrasts the TCC 2024 with the equivalent target cost option under the NEC suite of contracts.