PART 11Qualifying sub-contracts

Cessation of application to qualifying sub-contracts63

1

If a sub-contractor is of the opinion—

a

that neither the condition in regulation 58(3) nor the condition in regulation 58(4) is now met in relation to the qualifying sub-contract, and

b

that Part 2 of the Act, and these Regulations, should therefore cease to apply to that qualifying sub-contract,

it may give the SSRO notice to that effect.

2

A notice under paragraph (1) must—

a

be received by the SSRO no later than the contract completion date of the qualifying sub-contract;

b

be in writing;

c

state the date at which the sub-contractor believes that neither the condition in regulation 58(3) nor the condition in regulation 58(4) were met in relation to the qualifying sub-contract;

d

explain the sub-contractor’s reasons for that view; and

e

be copied to the other party to the qualifying sub-contract and the Secretary of State at the same time that it is sent to the SSRO.

3

The other party to the qualifying sub-contract or the Secretary of State may, within ten working days of receiving a copy of the notice, advise the SSRO in writing of any matters to which they consider the SSRO should have regard in deciding whether to overrule the notice.

4

The SSRO must consider the notice and any matters to which the other party to the qualifying sub-contract or the Secretary of State have advised that it should have regard.

5

If the SSRO does not agree that neither the condition in regulation 58(3) nor the condition in regulation 58(4) is met, it must overrule the notice.

6

If the SSRO agrees that neither the condition in regulation 58(3) nor the condition in regulation 58(4) is met, it must—

a

confirm the date on which neither the condition in regulation 58(3) nor the condition in regulation 58(4) were met in relation to the qualifying sub-contract; and

b

confirm that Part 2 of the Act, and these Regulations, no longer apply to that qualifying sub-contract.

7

The SSRO must—

a

notify the sub-contractor, the other party to the qualifying sub-contract and the Secretary of State in writing of its decision;

b

if the effect of the fact that Part 2 of the Act and these Regulations have ceased to apply to the qualifying sub-contract is that any other contract may also cease to be a qualifying sub-contract, notify the parties to that other qualifying sub-contract in writing of its decision.