http://www.legislation.gov.uk/ukpga/1988/9/section/4/1996-11-01Local Government Act 1988An Act to secure that local and other public authorities undertake certain activities only if they can do so competitively; to regulate certain functions of local and other public authorities in connection with public supply or works contracts; to authorise and regulate the provision of financial assistance by local authorities for certain housing purposes; to prohibit the promotion of homosexuality by local authorities; to make provision about local authorities’ publicity, local government administration, the powers of auditors, land held by public bodies, direct labour organisations, arrangements under the Employment and Training Act 1973, the Commission for Local Authority Accounts in Scotland, the auditing of accounts of local authorities in Scotland, and dog registration, dog licences and stray dogs; and for connected purposes.1988-03-24texttext/xmlenStatute Law Database2024-09-121996-11-01 Part I Competition Works contracts: restrictions Works contracts: restrictions. <CommentaryRef Ref="c13392261"/>41If a defined authority (a bidding authority) propose to enter into a works contract with another person (the other party) and under the contract the bidding authority are to carry out work falling within a defined activity, the bidding authority may not enter into the contract unless—athe first or second alternative of the first condition is fulfilled, andbthe second condition is fulfilled.2The first alternative of the first condition is that—athe contract is made by acceptance of the bidding authority’s offer to carry out the work,bthe bidding authority made the offer in response to an invitation by the other party to submit such offers, andcthe invitation was made to at least three other persons who are willing to carry out work of the kind concerned, and who are not defined authorities or include at least three persons who are not defined authorities.3The Secretary of State may by regulations vary—athe number of persons to whom an invitation must be made under subsection (2) (c) above; andbthe minimum number of those persons who are not to be defined authorities.4The second alternative of the first condition is that before entering into the contract the other party published, in at least one newspaper circulating in the locality in which the work is to be carried out and at least one publication circulating among persons who carry out work of the kind concerned, a notice inviting persons to submit offers to carry out the work.5The second condition is that the other party, in entering into the contract and in doing anything else (whether or not required by this Part) in connection with the contract 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.6Anything which (apart from this subsection) would amount to a failure to fulfil the first or second alternative of the first condition, or the second condition, shall not do so unless the bidding authority have become aware of the failure before entering into the contract..7This section applies where it is proposed to enter into the works contract on or after 1st April 1989.Pt. I (ss. 1–16): power to modify conferred by Environmental Protection Act 1990 (c. 43, SIF 46:4), s. 97(1)(b)Pt. I (ss. 1-16): power to modify conferred (prosp.) by Local Government Act 1992 (c. 19), ss. 8(5), 30(3)Pt. I (ss. 1-16): applied (with modifications) (temp. from 31.3.1995 to 31.12.2000) by S.I. 1995/678, art. 3, Sch. 1Pt. I (ss. 1-16): power to apply conferred (1.9.1997) by 1997 c. 50, s. 44(1), Sch. 4 para. (h)(i); S.I. 1997/1930, art. 3S. 4 modified by S.I. 1989/2488, art. 3S 4 modified (23.6.1994) by S.I. 1994/1671, art. 4S. 4 modified (10.11.1994) by S.I. 1994/2884, art. 4S. 4 modified (11.11.1994) by S.I. 1994/2888, art. 4S. 4 modified (20.7.1995) by 1995/1915, art. 6S. 4(1) modified (E.W.) by S.I. 1991/719, reg. 6(3)(a)Words in s. 4(6) substituted (14.2.1993) by Local Government Act 1992 (c. 19), s. 11, Sch. 1, para.11; S.I. 1992/3241, art.3
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<dc:description>An Act to secure that local and other public authorities undertake certain activities only if they can do so competitively; to regulate certain functions of local and other public authorities in connection with public supply or works contracts; to authorise and regulate the provision of financial assistance by local authorities for certain housing purposes; to prohibit the promotion of homosexuality by local authorities; to make provision about local authorities’ publicity, local government administration, the powers of auditors, land held by public bodies, direct labour organisations, arrangements under the Employment and Training Act 1973, the Commission for Local Authority Accounts in Scotland, the auditing of accounts of local authorities in Scotland, and dog registration, dog licences and stray dogs; and for connected purposes.</dc:description>
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<Part DocumentURI="http://www.legislation.gov.uk/ukpga/1988/9/part/I/1996-11-01" IdURI="http://www.legislation.gov.uk/id/ukpga/1988/9/part/I" NumberOfProvisions="17" RestrictEndDate="1999-07-27" RestrictExtent="E+W+S" id="part-I">
<Number>
<CommentaryRef Ref="c13388171"/>
<CommentaryRef Ref="c13388181"/>
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Part I
</Number>
<Title> Competition</Title>
<Pblock DocumentURI="http://www.legislation.gov.uk/ukpga/1988/9/part/I/crossheading/works-contracts-restrictions/1996-11-01" IdURI="http://www.legislation.gov.uk/id/ukpga/1988/9/part/I/crossheading/works-contracts-restrictions" NumberOfProvisions="2" RestrictEndDate="2003-04-01" RestrictExtent="E+W+S" id="part-I-crossheading-works-contracts-restrictions">
<Title> Works contracts: restrictions</Title>
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<Title>
Works contracts: restrictions.
<CommentaryRef Ref="c13392261"/>
</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1988/9/section/4/1996-11-01" IdURI="http://www.legislation.gov.uk/id/ukpga/1988/9/section/4" id="section-4">
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<CommentaryRef Ref="c13392271"/>
4
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<P1para>
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<Pnumber>
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1
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<P2para>
<Text>If a defined authority (a bidding authority) propose to enter into a works contract with another person (the other party) and under the contract the bidding authority are to carry out work falling within a defined activity, the bidding authority may not enter into the contract unless—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1988/9/section/4/1/a/1996-11-01" IdURI="http://www.legislation.gov.uk/id/ukpga/1988/9/section/4/1/a" id="section-4-1-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the first or second alternative of the first condition is fulfilled, and</Text>
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<Pnumber>b</Pnumber>
<P3para>
<Text>the second condition is fulfilled.</Text>
</P3para>
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<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1988/9/section/4/2/1996-11-01" IdURI="http://www.legislation.gov.uk/id/ukpga/1988/9/section/4/2" id="section-4-2">
<Pnumber>2</Pnumber>
<P2para>
<Text>The first alternative of the first condition is that—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1988/9/section/4/2/a/1996-11-01" IdURI="http://www.legislation.gov.uk/id/ukpga/1988/9/section/4/2/a" id="section-4-2-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the contract is made by acceptance of the bidding authority’s offer to carry out the work,</Text>
</P3para>
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<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1988/9/section/4/2/b/1996-11-01" IdURI="http://www.legislation.gov.uk/id/ukpga/1988/9/section/4/2/b" id="section-4-2-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>the bidding authority made the offer in response to an invitation by the other party to submit such offers, and</Text>
</P3para>
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<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1988/9/section/4/2/c/1996-11-01" IdURI="http://www.legislation.gov.uk/id/ukpga/1988/9/section/4/2/c" id="section-4-2-c">
<Pnumber>c</Pnumber>
<P3para>
<Text>the invitation was made to at least three other persons who are willing to carry out work of the kind concerned, and who are not defined authorities or include at least three persons who are not defined authorities.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1988/9/section/4/3/1996-11-01" IdURI="http://www.legislation.gov.uk/id/ukpga/1988/9/section/4/3" id="section-4-3">
<Pnumber>3</Pnumber>
<P2para>
<Text>The Secretary of State may by regulations vary—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1988/9/section/4/3/a/1996-11-01" IdURI="http://www.legislation.gov.uk/id/ukpga/1988/9/section/4/3/a" id="section-4-3-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the number of persons to whom an invitation must be made under subsection (2) (c) above; and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1988/9/section/4/3/b/1996-11-01" IdURI="http://www.legislation.gov.uk/id/ukpga/1988/9/section/4/3/b" id="section-4-3-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>the minimum number of those persons who are not to be defined authorities.</Text>
</P3para>
</P3>
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<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1988/9/section/4/4/1996-11-01" IdURI="http://www.legislation.gov.uk/id/ukpga/1988/9/section/4/4" id="section-4-4">
<Pnumber>4</Pnumber>
<P2para>
<Text>The second alternative of the first condition is that before entering into the contract the other party published, in at least one newspaper circulating in the locality in which the work is to be carried out and at least one publication circulating among persons who carry out work of the kind concerned, a notice inviting persons to submit offers to carry out the work.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1988/9/section/4/5/1996-11-01" IdURI="http://www.legislation.gov.uk/id/ukpga/1988/9/section/4/5" id="section-4-5">
<Pnumber>5</Pnumber>
<P2para>
<Text>The second condition is that the other party, in entering into the contract and in doing anything else (whether or not required by this Part) in connection with the contract 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.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1988/9/section/4/6/1996-11-01" IdURI="http://www.legislation.gov.uk/id/ukpga/1988/9/section/4/6" id="section-4-6">
<Pnumber>6</Pnumber>
<P2para>
<Text>
Anything which (apart from this subsection) would amount to a failure to fulfil the first or second alternative of the first condition, or the second condition, shall not do so
<Addition ChangeId="d29p22471" CommentaryRef="c13392291">unless the bidding authority have become aware of the failure before entering into the contract.</Addition>
.
</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1988/9/section/4/7/1996-11-01" IdURI="http://www.legislation.gov.uk/id/ukpga/1988/9/section/4/7" id="section-4-7">
<Pnumber>7</Pnumber>
<P2para>
<Text>This section applies where it is proposed to enter into the works contract on or after 1st April 1989.</Text>
</P2para>
</P2>
</P1para>
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<Commentary id="c13388171" Type="C">
<Para>
<Text>
<CitationSubRef id="c01318" URI="http://www.legislation.gov.uk/id/ukpga/1988/9/part/I" SectionRef="part-I">Pt. I</CitationSubRef>
(ss. 1–16): power to modify conferred by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1990/43" id="c01319" Year="1990" Class="UnitedKingdomPublicGeneralAct" Number="43" Title="Environmental Protection Act 1990">Environmental Protection Act 1990 (c. 43, SIF 46:4)</Citation>
,
<CitationSubRef id="c01320" URI="http://www.legislation.gov.uk/id/ukpga/1990/43/section/97/1/b" Operative="true" CitationRef="c01319" SectionRef="section-97-1-b">s. 97(1)(b)</CitationSubRef>
</Text>
</Para>
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<Para>
<Text>
<CitationSubRef id="c01321" URI="http://www.legislation.gov.uk/id/ukpga/1988/9/part/I" SectionRef="part-I">Pt. I</CitationSubRef>
(ss. 1-16): power to modify conferred (
<Emphasis>prosp.</Emphasis>
) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1992/19" id="c01322" Year="1992" Class="UnitedKingdomPublicGeneralAct" Number="19" Title="Local Government Act 1992">Local Government Act 1992 (c. 19)</Citation>
,
<CitationSubRef id="c01323" URI="http://www.legislation.gov.uk/id/ukpga/1992/19/section/8/5" Operative="true" CitationRef="c01322" SectionRef="section-8-5">ss. 8(5)</CitationSubRef>
,
<CitationSubRef id="c01324" URI="http://www.legislation.gov.uk/id/ukpga/1992/19/section/30/3" CitationRef="c01322" SectionRef="section-30-3">30(3)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c13388191" Type="C">
<Para>
<Text>
<CitationSubRef id="c01325" URI="http://www.legislation.gov.uk/id/ukpga/1988/9/part/I" SectionRef="part-I">Pt. I</CitationSubRef>
(ss. 1-16): applied (with modifications) (
<Emphasis>temp.</Emphasis>
from 31.3.1995 to 31.12.2000) by
<Citation URI="http://www.legislation.gov.uk/id/uksi/1995/678" id="c01326" Class="UnitedKingdomStatutoryInstrument" Year="1995" Number="678">S.I. 1995/678</Citation>
,
<CitationSubRef id="c01327" URI="http://www.legislation.gov.uk/id/uksi/1995/678/article/3" CitationRef="c01326" SectionRef="article-3">art. 3</CitationSubRef>
,
<CitationSubRef id="c01328" URI="http://www.legislation.gov.uk/id/uksi/1995/678/schedule/1" Operative="true" CitationRef="c01326" SectionRef="schedule-1">Sch. 1</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c13388201" Type="C">
<Para>
<Text>
<CitationSubRef id="c01329" URI="http://www.legislation.gov.uk/id/ukpga/1988/9/part/I" SectionRef="part-I">Pt. I</CitationSubRef>
(ss. 1-16): power to apply conferred (1.9.1997) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1997/50" id="c01330" Year="1997" Class="UnitedKingdomPublicGeneralAct" Number="50">1997 c. 50</Citation>
,
<CitationSubRef id="c01331" URI="http://www.legislation.gov.uk/id/ukpga/1997/50/section/44/1" CitationRef="c01330" SectionRef="section-44-1">s. 44(1)</CitationSubRef>
,
<CitationSubRef id="c01332" URI="http://www.legislation.gov.uk/id/ukpga/1997/50/schedule/4" Operative="true" CitationRef="c01330" SectionRef="schedule-4">Sch. 4</CitationSubRef>
para. (h)(i);
<Citation URI="http://www.legislation.gov.uk/id/uksi/1997/1930" id="c01333" Class="UnitedKingdomStatutoryInstrument" Year="1997" Number="1930">S.I. 1997/1930</Citation>
,
<CitationSubRef id="c01334" URI="http://www.legislation.gov.uk/id/uksi/1997/1930/article/3" Operative="true" CitationRef="c01333" SectionRef="article-3">art. 3</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c13392261" Type="C">
<Para>
<Text>
<CitationSubRef id="c02441" URI="http://www.legislation.gov.uk/id/ukpga/1988/9/section/4" SectionRef="section-4">S. 4</CitationSubRef>
modified by
<Citation URI="http://www.legislation.gov.uk/id/uksi/1989/2488" id="c02442" Class="UnitedKingdomStatutoryInstrument" Year="1989" Number="2488">S.I. 1989/2488</Citation>
,
<CitationSubRef id="c02443" URI="http://www.legislation.gov.uk/id/uksi/1989/2488/article/3" Operative="true" CitationRef="c02442" SectionRef="article-3">art. 3</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c13392271" Type="C">
<Para>
<Text>
<CitationSubRef id="c02444" URI="http://www.legislation.gov.uk/id/ukpga/1988/9/section/4" SectionRef="section-4">S 4</CitationSubRef>
modified (23.6.1994) by
<Citation URI="http://www.legislation.gov.uk/id/uksi/1994/1671" id="c02445" Class="UnitedKingdomStatutoryInstrument" Year="1994" Number="1671">S.I. 1994/1671</Citation>
,
<CitationSubRef id="c02446" URI="http://www.legislation.gov.uk/id/uksi/1994/1671/article/4" Operative="true" CitationRef="c02445" SectionRef="article-4">art. 4</CitationSubRef>
</Text>
</Para>
<Para>
<Text>
<CitationSubRef id="c02447" URI="http://www.legislation.gov.uk/id/ukpga/1988/9/section/4" SectionRef="section-4">S. 4</CitationSubRef>
modified (10.11.1994) by
<Citation URI="http://www.legislation.gov.uk/id/uksi/1994/2884" id="c02448" Class="UnitedKingdomStatutoryInstrument" Year="1994" Number="2884">S.I. 1994/2884</Citation>
,
<CitationSubRef id="c02449" URI="http://www.legislation.gov.uk/id/uksi/1994/2884/article/4" Operative="true" CitationRef="c02448" SectionRef="article-4">art. 4</CitationSubRef>
</Text>
</Para>
<Para>
<Text>
<CitationSubRef id="c02450" URI="http://www.legislation.gov.uk/id/ukpga/1988/9/section/4" SectionRef="section-4">S. 4</CitationSubRef>
modified (11.11.1994) by
<Citation URI="http://www.legislation.gov.uk/id/uksi/1994/2888" id="c02451" Class="UnitedKingdomStatutoryInstrument" Year="1994" Number="2888">S.I. 1994/2888</Citation>
,
<CitationSubRef id="c02452" URI="http://www.legislation.gov.uk/id/uksi/1994/2888/article/4" Operative="true" CitationRef="c02451" SectionRef="article-4">art. 4</CitationSubRef>
</Text>
</Para>
<Para>
<Text>
<CitationSubRef id="c02453" URI="http://www.legislation.gov.uk/id/ukpga/1988/9/section/4" SectionRef="section-4">S. 4</CitationSubRef>
modified (20.7.1995) by 1995/1915, art. 6
</Text>
</Para>
</Commentary>
<Commentary id="c13392281" Type="C">
<Para>
<Text>
<CitationSubRef id="c02454" URI="http://www.legislation.gov.uk/id/ukpga/1988/9/section/4/1" SectionRef="section-4-1">S. 4(1)</CitationSubRef>
modified (E.W.) by
<Citation URI="http://www.legislation.gov.uk/id/uksi/1991/719" id="c02455" Class="UnitedKingdomStatutoryInstrument" Year="1991" Number="719">S.I. 1991/719</Citation>
,
<CitationSubRef id="c02456" URI="http://www.legislation.gov.uk/id/uksi/1991/719/regulation/6/3/a" Operative="true" CitationRef="c02455" SectionRef="regulation-6-3-a">reg. 6(3)(a)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c13392291" Type="F">
<Para>
<Text>
Words in
<CitationSubRef id="c02457" URI="http://www.legislation.gov.uk/id/ukpga/1988/9/section/4/6" SectionRef="section-4-6">s. 4(6)</CitationSubRef>
substituted (14.2.1993) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1992/19" id="c02458" Year="1992" Class="UnitedKingdomPublicGeneralAct" Number="19" Title="Local Government Act 1992">Local Government Act 1992 (c. 19)</Citation>
,
<CitationSubRef id="c02459" URI="http://www.legislation.gov.uk/id/ukpga/1992/19/section/11" CitationRef="c02458" SectionRef="section-11">s. 11</CitationSubRef>
,
<CitationSubRef id="c02460" URI="http://www.legislation.gov.uk/id/ukpga/1992/19/schedule/1" Operative="true" CitationRef="c02458" SectionRef="schedule-1">Sch. 1</CitationSubRef>
,
<CitationSubRef id="c02461" URI="http://www.legislation.gov.uk/id/ukpga/1992/19/paragraph/11" CitationRef="c02458" SectionRef="paragraph-11">para.11</CitationSubRef>
;
<Citation URI="http://www.legislation.gov.uk/id/uksi/1992/3241" id="c02462" Class="UnitedKingdomStatutoryInstrument" Year="1992" Number="3241">S.I. 1992/3241</Citation>
,
<CitationSubRef id="c02463" URI="http://www.legislation.gov.uk/id/uksi/1992/3241/article/3" Operative="true" CitationRef="c02462" SectionRef="article-3">art.3</CitationSubRef>
</Text>
</Para>
</Commentary>
</Commentaries>
</Legislation>