What is Disallowed Cost?

What is Disallowed Cost?

Disallowed Cost is cost which the Project Manager decides:

	Is not justified by the Contractor’s accounts and records,

	Should not have been paid to a Subcontractor in accordance with his contract,

	Was incurred only because the Contractor did not: give an early warning; or follow an acceptance or procurement procedure stated in the Works Information (see Clause 11.2(25)).