  We present experimental results on thermoelectric power ({\em S}) and
electrical resistivity ($\rho $) of pseudobinary alloys
Ho(Al$_x$Co$_{1-x}$)$_2$ ($0 \leq x \leq 0.1 $), in the temperature range 4.2 K
to 300 K. The work focuses on the effects of static (induced by alloying) and
dynamic (induced by temperature) disorder on the magnetic state and electronic
transport in a metallic system with itinerant metamagnetic instability. Spatial
fluctuations of the local magnetic susceptibility in the alloys lead to a
development of a partially ordered magnetic ground state of the itinerant 3d
electron system. This results in a strong increase of the residual resistivity
and a suppression of the temperature-dependent resistivity. Thermopower
exhibits a complex temperature variation in both the magnetically ordered and
in the paramagnetic state. This complex temperature variation is referred to
the electronic density of states features in vicinity of Fermi energy and to
the interplay of magnetic and impurity scattering. Our results indicate that
the magnetic enhancement of the Co 3d-band in RCo$_{\rm 2}$--based alloys upon
a substitution of Co by non-magnetic elements is mainly related to a
progressive localization of the Co -- 3d electrons caused by disorder. We show
that the magnitude of the resistivity jump at the Curie temperature for
RCo$_{\rm 2}$ compounds exhibiting a first order phase transition is a
non-monotonic function of the Curie temperature due to a saturation of the
3d--band spin fluctuation magnitude at high temperatures.
