Local Government, Planning and Land Act 1980

7 Limitations on power to enter into works contracts. E+W+S

(1) A local authority may not—

(a) enter into a works contract [F1 under which they are to carry out work] whose value exceeds the prescribed amount unless they do so as the result of acceptance of a tender, or

(b) enter into a works contract [F1 under which they are to carry our work] whose value is equal to or less than the prescribed amount unless they have complied with such conditions as may be prescribed by regulations made by the Secretary of State.

[F2 (1A) A local authority may not enter into a works contract under which they are to carry out work unless the competition condition is fulfilled, that is, the other party to the contract, in entering into it and doing anything else in connection with it before entering into it, did not act in a manner having the effect or intended or likely to have the effect or restricting, distorting or preventing competition.

(1B) Subsection (1A) above shall prevent the local authority from entering into the contract [F3 unless the local authority have become aware, before entering into the contract,] of the failure to fulfill the competition condition]

(2) In this section “the prescribed amount " means an amount specified in regulations made by the Secretary of State.

(3) For the purposes of this Part of this Act an authority enter into a contract as the result of acceptance of a tender if—

(a) the contract was made by acceptance of an offer on their part to carry out the work in question; and

(b) they made the offer in response to an invitation to submit such offers; and

(c) the invitation was extended to at least three other persons [F4 who are not, or include at least three persons who are not, local authorities or development bodies].

(4) The Secretary of State may by regulations—

(a) direct the manner in which the value of a contract is to be determined for the purposes of this section; and

(b) specify descriptions of contract to which subsection (1) above is not to apply; and

(c) specify for the purposes of subsection (3)(c) above a number of persons different from three.

(5) Without prejudice to the generality of subsection (4) above, regulations made by virtue of paragraph (a) of that subsection may direct that a number of contracts shall be treated as if they were one contract for the purpose of determining whether the prescribed amount is exceeded.

(6) Regulations under this section may make different provision in relation to different contracts and descriptions of contracts.

(7) 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

F1 Words inserted by Local Government Act 1988 (c. 9, SIF 81:1, 2), s. 32, Sch. 6 para 2(2)

F2 S. 7(1A)(1B) inserted by Local Government Act 1988 (c. 9, SIF 81:1, 2), s. 32, Sch. 6 para. 2(3)

F3 Words in s. 7(1B) substituted (14.2.1993) by Local Government Act 1992 (c. 19), s. 11, Sch. 1 para.1; S.I. 1992/3241, art.3.

F4 Words inserted by Local Government Act 1988 (c. 9, SIF 81:1, 2), s. 32, Sch. 6 para. 2(4)

Modifications etc. (not altering text)

C1 S. 7(1) excluded (S.) by S.I. 1990/1782, reg. 7(1)

S. 7(1) restricted (6.4.1992) by S.I. 1992/582, reg. 3.

C2 S. 7(1) restricted (1.4.1994 with application only to local authorities in Wales) by S.I. 1994/338, regs. 3, 7

S. 7(1) restricted (31.3.1994) by S.I. 1994/567, reg. 2

S. 7(1) excluded (31.3.1995) by S.I. 1995/677, reg. 6

S. 7(1) excluded (17.4.1997) by S.I. 1997/999, reg. 8