9 Regulation of functional work.E+W+S
(1)Subject to the following provisions of this section, a local authority or development body may undertake such functional work as they consider appropriate, having regard to the duty imposed by section 16 below.
(2)A local authority or development body may not undertake such functional work of any description unless they have first prepared a written statement—
(a)of the amount which they will credit to their DLO revenue account in respect of carrying out the work or of carrying out work of that description which they intend or expect to carry out; or
(b)of a method by which they intend that the amount to be so credited shall be calculated.
(3)The Secretary of State may by regulations—
(a)specify descriptions of functional work which a local authority or development body may not undertake unless they have first complied with the conditions specified in subsection (4) below as well as with subsection (2) above; and
(b)specify conditions with which a local authority or development body must comply, as well as complying with subsection (2) above, before they undertake functional work of any other description.
(4)The conditions mentioned in subsection (3)(a) above are—
(a)that they have invited offers to undertake the work, in accordance with conditions specified by them, from at least three persons [F1who are not, or include at least three persons who are not, local authorities or development bodies and who are included in a list maintained by the authority or body seeking to undertake the work] of persons who are willing to undertake such work; and
[F2(aa)that they have included in the invitation prescribed matters (which they may relate to the time allowed for responding, the method of responding, or otherwise); and
(aaa)that they have complied with the prescribed requirements as to responses (which may include requirements to disregard certain responses, requirements about the keeping or opening of responses, or otherwise); and
(aaaa)that, in reaching the decision that they should undertake the work and in doing anything else in connection with the work before reaching the decision, they have not acted an a manner having the effect or intended or likely to have the effect of restricting, distorting or preventing competition; and]
(b)that they have furnished any statement which they are required to furnish in pursuance of subsection (8) below ;
[F3and “prescribed ” in paragraphs (aa) and (aaa) above means prescribed by regulations made by the Secretary of State]
(5)The Secretary of State may by regulations specify for the purposes of subsection (4)(a) above a number of persons different from three.
[F4(5A)Regulations under subsection (3)(a) above may provide that the conditions in subsection (4)(aa) and (aaa) above are not to apply if the work falling within a description specified by the regulations satisfies such criteria as are so specified]
(6)Where a local authority or development body are required to comply with the [F5condition specified in subsection (4)(a)] above, the written statement which they are required to prepare under subsection (2) above is a statement consistent with conditions corresponding to those specified in the invitation mentioned in subsection (4)(a) above.
(7)Where—
(a)a local authority or development body are required to comply with conditions specified in regulations made by virtue of subsection (3)(b) above; and
(b)the conditions require them to invite offers to undertake work,
the written statement which they are required to prepare under subsection (2) above is a statement consistent with conditions corresponding to those specified in the invitation.
(8)If any person requires a local authority or development body to do so, they shall furnish him with a written statement showing who is to undertake the work, its estimated cost and the price of each offer submitted to the local authority or development body in consequence of the invitation mentioned in subsection (4)(a) above.
(9)In subsection (8) above “estimated cost ", in relation to any work, means—
(a)if the local authority or development body are to carry out the work themselves, its cost as estimated under subsection (2) above; and
(b)if any other person is to carry it out, the price for which he has contracted to carry it out.
(10)A statutory instrument containing regulations under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.
Textual Amendments
F1Words substituted by Local Government Act 1988 (c. 9, SIF 81:1, 2), s. 32, Sch. 6 para. 3(2) (subject to savings in S.I. 1988/979, art. 4 and S.I. 1988/1043, art. 4)
F2S. 9(4)(aa)–(aaaa) inserted by Local Government Act 1988 (c. 9, SIF 81:1, 2), s. 32, Sch. 6 para. 3(3)
F3Words inserted by Local Government Act 1988 (c. 9, SIF 81:1, 2), s. 32, Sch. 6 para. 3(4)
F5Words substituted by Local Government Act 1988 (c. 9, SIF 81:1, 2), s. 32, Sch. 6 para. 3(6)
Modifications etc. (not altering text)
C1S. 9(4)(aaaa) excluded by S.I. 1988/1043, art. 4
C2S. 9(4)(aaaa) excluded by S.I. 1988/979, art. 4 and S.I. 1988/1043, art. 4