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Local Government Act 1988
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2(1)Section 7 (limitations on power to enter into works contracts) shall be amended as follows.
(2)In subsection (1) after “works contract” (in each place) there shall be inserted “under which they are to carry out work”.
(3)After subsection (1) there shall be inserted—
“(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 of restricting, distorting or preventing competition.
(1B)Subsection (1A) above shall not prevent the local authority from entering into the contract unless, at the time it is proposed to be entered into, they are aware of the failure to fulfil the competition condition.”
(4)At the end of subsection (3)(c) there shall be added “who are not, or include at least three persons who are not, local authorities or development bodies”.
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