The subcontractor is on an Option A contract so the use of defined costs relates to valuing CE's only, in the absence of a SSoCC in the Subcontract. With this in mind, is holiday accrual now irrelevant?

Simphi, before I answer this, can you tell me whether you are asking this as a Contractor or an Employer’s person i.e. the Project Manager or delegate ? Thanks.

Jon. I’m asking this as a Contractor. My question is related to a previous question raised by Lockerbie Phil which you answered, but I’m not sure the original question was correctly posed. You may prove me wrong though!
I am also intigued as to what the difference would be if I was the Employer - I’m not sure if you are alluding to a different arangement. As a Contractor, we are encountering a similar discussion point in a Contractor to Employer capacity, in that accruals are being disallowed.

Simphi : You, as a Contractor, are paid what you pay and are forecast to be pay out by the the next assessment date. This has to be in accordance with your subcontracts, otherwise it is a Disallowed Cost. In which case, I think my answer to this question is relevant :

If that doesn’t answer it (as best I can), please give more details !