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2.—(1) In regulation 2 of the construction regulations (interpretation)—
(a)for the definition of “the specified proportion” substitute the following—
““the specified proportion” means an amount equal to the product of the following formula—
where
T=an amount equal to the cost to a defined authority of the specified work;
A=an amount equal to the cost of specified work which is being carried out by a person other than a defined authority in connection with work falling within any other defined activity or in connection with work to which Part III of the Local Government, Planning and Land Act 1980(1) applies where that work is being carried out by another person on behalf of a defined authority;
B=an amount equal to any amount included in T in respect of goods or services which are provided by a person other than a defined authority;
C=an amount equal to 35% of (T−(A+B)) or £300,000, whichever is greater;
E=an amount equal to the cost of any specified work being carried out following a competitive tendering process in respect of that work conducted in accordance with the provisions of the Act(2);
F=an amount equal to the cost of any specified work being carried out by a person other than a defined authority following a competitive tendering process where—
no defined authority submitted a bid to carry out that work; and
that work had previously been carried out by the defined authority conducting that process or by its predecessor; and
G=an amount equal to the cost of specified work carried out by a defined authority which is funded from a school’s delegated budget provided under a scheme prepared in accordance with section 103 of the Education Act 1996(3),
Provided that—
any amount taken into account in applying any element in the formula (other than T) shall not also be taken into account in applying any other element in the formula; and
any such amount shall not be taken into account in applying any element in the formula used for calculating the specified proportion of any other defined activity;”; and
(b)The definition of “voluntary competitive tendering” is revoked.
(2) In regulation 3 of those regulations (application of section 6) for “1st July 1998” substitute “1st October 1999”.
In the construction regulations and the other regulations defined in regulation 1(2) of these Regulations, “the Act” means the Local Government Act 1988.
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