NEC4 option C and disallowing actual costs that are not substantiated

NEC4 Option C contract , received an application for interim payment from the contractor with no invoices/payment assessment for subcontractors actual costs not accruals. my question is can I disallow the payments contractually? In the past I have agreed the assessment on the basis of " payment on account , pending audit" , but I dont think its best practice. pls advise.

Under main option C the amount due is predominantly the Price for Work Done to Date, which is particularly defined as the total Defined Cost plus Fee which the PM forecasts will have been paid by the next payment assessment date.

To assess what will have been paid you would need to set up a simple spreadsheet with the payment dates and add in Subcontractor payment dates to see whether these provide for payment to be made by the next payment assessment date under the main contract.

Once you have ascertained these dates then you can see when the applicable payment notice, under each subcontract, is to be given and by whom. If the Scope does not detail what is to be provided with each assessment then, as you say, it is a retrospective verification procedure under clause 52.2.

Once you have established this routine then you can see what trends apply in terms of application v certification, to gain an understanding of the amount that is most likely to be paid.

Under this main option the payment procedure is not intended to produce an ‘exact value’ each time but is designed to assist with cash-flow. Where evidence is not provided by the Contractor, however, then that means the PM makes their own assessment which, if they have adopted a reasonable approach to the matter, would be difficult to challenge their assumptions.