NEC4: Disallowed Cost Explained

In Episode 9 of the NEC4 Webinar Series with CECA, Ben Walker and Glenn Hide unpack disallowed cost under main options C, D and E. They explain why this clause exists, where it sits in the payment assessment process, and how to avoid the most common reasons costs get disallowed. David Allen from CECA Southern joins to add the contractor's perspective. In this episode: - The two definitions of disallowed cost (options C, D, E and the separate option F definition) - Why disallowed cost only exists in cost-reimbursable contracts - Where disallowed cost fits in the payment assessment process (clauses 50.1, 50.3, 51.1) - Six categories of disallowed cost, walked through in detail - The 30+ places where the scope is referenced in the conditions of contract - Why building applications jointly with the project manager is the most reliable way to avoid disputes - Live Q&A on HGCRA pay-less notices, "in order to provide the works", and dispute costs Chapters: 00:00 Introduction and welcome 02:10 What is a disallowed cost? 04:45 Definition under option F 07:00 Why we need disallowed costs (and why not in A and B) 11:45 Payment assessment process and where disallowed cost fits 19:00 Bullet 1: Cost not justified by records and accounts 27:45 Bullet 2: Should not have been paid to subcontractor or supplier 34:30 Bullet 3: Procedural failures (procurement, early warning, dispute) 41:30 Bullet 4: Defects after completion 46:45 Bullets 5 and 6: Wastage, underutilisation and dispute costs 53:45 Q&A: adjudication costs, HGCRA pay-less notice, in order to provide the works 60:00 Final thoughts and close Resources: Webinar page: https://www.gatherinsights.com/webinars/nec4-disallowed-cost-explained Book a demo: https://www.gatherinsights.com/demo Subscribe: https://www.youtube.com/@gatherinsights Connect with us: Website: https://www.gatherinsights.com LinkedIn: https://www.linkedin.com/company/gather-insights #NEC4 #DisallowedCost #Construction #CommercialManagement #SiteDiary #Gather #CECA