The Local Government Act 1988 (Defined Activities) (Exemption) (England) Order 1992

Explanatory Note

(This note is not part of the Order)

Section 4 of the Local Government Act 1988 precludes a local authority from entering into a works contract under which they are to carry out work falling within an activity listed in section 2(2) of that Act (a defined activity) unless the work has first been subjected to a competitive tendering exercise.

This Order provides for the case where the property of a district council in England, a London borough council or the Common Council of the City of London is transferred to a housing action trust established before 6th April 1992 under Part III of the Housing Act 1988. The Order provides that work which the authority has been carrying out in connection with such property as functional work (as defined in section 3 of the Act) and which it carries out for the housing action trust will not be treated as falling within a defined activity for a limited period after the property vests in the housing action trust so long as certain conditions are fulfilled.