Regulation 13 Insertion of new Part IIA into the principal Regulations

After Part II of the principal Regulations the following Part shall be inserted—

“PART IIA

PAYMENTS EXCEPTED FROM SUBSECTION (1) OF SECTION 559

Small payments

20B

(1)

Subsection (1) of section 559 shall not apply to a contract payment if—

(a)

the conditions prescribed in paragraph (2) in relation to the person making the payment are satisfied, and

(b)

the condition prescribed in paragraph (3) in relation to the payment is satisfied.

(2)

The conditions prescribed in relation to the person making the payment are that—

(a)

the person is one to whom subsection (2) of section 560^f1 applies by virtue of any of paragraphs (aa) to (f) of that subsection, and

(b)

the person has been approved by the inspector for the purposes of this regulation.

(3)

The condition prescribed in relation to the payment is that the payment is not one made under a contract in respect of which the total contract payments so made (excluding the direct cost of materials) exceed or are likely to exceed £1000.”.