What are Disallowed Costs?
Disallowed Costs are costs which the Project Manager decides:
Are not justified by the Contractor’s accounts and records
Should not have been paid to a Subcontractor or supplier in accordance with the contract
Were incurred only because the Contractor did not: follow an acceptance or procurement procedure stated in the Works Information; or did not give an early warning which the contract required him to give (see Clause 11.2(25)).