Where the Contractor has received charges for equipment damaged equipment from the supplier, are these charges “defined cost” or are they disallowance by the Project Manager?
The contract defines disallowed cost as “cost which the Project Manager decides; was incurred only because the Contractor did not; follow an acceptance, procurement or other procedure stated on this contract or; give an early warning which this contract required him to give”. The suppliers specification is not stated in this contract, and the damage was incurred whilst providing the works, are the costs disallowed?
The contract defines disallowed cost as “cost which the Project Manager decides; was incurred only because the Contractor did not; follow an acceptance, procurement or other procedure stated on this contract or; give an early warning which this contract required him to give”. The suppliers specification is not stated in this contract, and the damage was incurred whilst providing the works, are the costs disallowed?