Negotiated Contract Cost (NCC)
EVM Terms
Reviewed by forProject Technology - updated Sep 2026
Quick definition: Negotiated Contract Cost (NCC) is the negotiated cost of the original contract plus all negotiated contractual changes, not counting any authorized but unpriced work.
NCC, also called Contract Target Cost (CTC), reflects only costs that have actually been negotiated and agreed to. It leaves out the estimated cost of changes that are authorized but not yet priced. Where a contract has no authorized unpriced work, NCC and the Contract Budget Base are the same figure; where it does, the CBB is larger by the estimated cost of that work.
Why it matters
NCC gives a clean, negotiated cost baseline separate from Management Reserve or the uncertainty of unpriced changes. It's a key reference point for reconciling budgets and confirming that a project's allocated budgets tie back to what was actually contracted.
Also known as
Contract Target Cost (CTC)
Used in
Contract budget reconciliation; Contract Budget Base calculation (CBB = NCC + Authorized Unpriced Work)
See also
FAQ
Is NCC the same as Contract Target Cost?
Yes — Contract Target Cost is simply the alternate name for the same figure.
Why doesn't NCC include authorized unpriced work?
Because that work hasn't been formally negotiated and priced yet — once it is, its value moves into NCC.
Definition maintained by forProject Technology.
© 2026 forProject Technology, Inc.
© 2026 forProject Technology, Inc.
