We are working on a NEC4 Option C Contract as the Contractor.
We have forgot to submit a proposed subcontractor to the Project Manager for his acceptance as required under clause 26.2.
The Project Manager is now saying that the costs are deemed disallowed and quoted “Disallowed cost is cost which; was incurred only because the Contractor did not - follow an acceptance or procurement procedure stated in the Scope”.
This is despite the Subcontractor being required to Provide the Works.
It is our view that despite our failure in submitting the subcontractor for acceptance (1 instance out of 30) that the costs are not disallowable as they are defined costs pursuant to clause 11.2 (23).
If the subcontractor has not been accepted by the PM (Cl 26.3) can he treat the subcontractor costs for Providing the Works as disallowable?