27 february 2015
Disallowed Cost is an area of NEC contracts which is commonly misunderstood in practice and, as such, poorly administered.
Watch Stuart Kings, principal developer of the recent ECC Project Manager Accreditation programme, Barry Trebes, Project Director at Mott MacDonald, and Matthew Garratt, Commercial Director for Costain group’s redevelopment project at London Bridge Station. discuss the rationale and application of Disallowed Cost under the NEC3 Engineering and Construction Contract (ECC).
Topics covered included:
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A definition of Disallowed Cost
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Defined Cost
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The relevance of clause 52.1
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Open book audit
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The importance of a commercial management plan