Contract Target Cost (CTC)
EVM Terms
Reviewed by forProject Technology - updated Sep 2026
Quick definition: Contract Target Cost (CTC) is another name for Negotiated Contract Cost (NCC): the negotiated cost of the original contract plus all negotiated contract changes.
Contract Target Cost is a synonym for Negotiated Contract Cost. See the Negotiated Contract Cost entry for what it includes and how it's used.
What this means for you
CTC is the starting point for calculating Contract Target Price on incentive-type contracts, where target cost plus target fee determines the baseline used to share cost underruns or overruns between contractor and customer. It's a foundational number in contract-level Earned Value Management (EVM) reconciliation.
Also known as
Negotiated Contract Cost (NCC)
Used in
Contract Target Price
Related job aid
How Contract Price, Cost and Budget Fit Together →FAQ
Is CTC the same as Negotiated Contract Cost?
Yes. Contract Target Cost is another name for Negotiated Contract Cost.
Definition maintained by forProject Technology.
© 2026 forProject Technology, Inc.
© 2026 forProject Technology, Inc.
