{
  "url": "https://openlegislation.uk/local-government-act-1988-competition-england-no-2-regulations-1997/regulation-3",
  "json_url": "https://openlegislation.uk/local-government-act-1988-competition-england-no-2-regulations-1997/regulation-3.json",
  "legislation": "uksi/1997/2732",
  "legislation_title": "The Local Government Act 1988 (Competition) (England) (No. 2) Regulations 1997",
  "legislation_url": "https://openlegislation.uk/local-government-act-1988-competition-england-no-2-regulations-1997",
  "path": "regulation/3",
  "kind": "regulation",
  "number": "3",
  "heading": "Amendments to the construction regulations",
  "text": "(1) The construction regulations are amended in accordance with paragraphs (2) to (4) below.\n(2) With effect from 1st October 1998 in regulation 2 (interpretation)—\n(a) substitute the following for the definition of “allowable period”—\n““allowable period”, in relation to a defined authority of the description specified in paragraph (2), means the period of two years commencing with the day on which section 6 of the Act first applies to that authority;”\n(b) substitute the following for the definition of “the cost”—\n““the cost” means the estimated total annual cost including overheads provided that that estimated cost (including overheads) is not treated by a defined authority as forming part of the cost of—\n(i) another defined activity; or\n(ii) work to which Part III (direct labour organisations) of the Local Government, Planning and Land Act 1980 applies;”\n(c) substitute the following for the definition of “the specified proportion”—\n““the specified proportion” means an amount equal to the product of the formula\n(T-(A+B))-(C+D+E+F+G+H+J) where—\nT an amount equal to the cost to a defined authority of the specified work;\nA 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 (direct labour organisations) of the Local Government, Planning and Land Act 1980 applies where that work is being carried out by another person on behalf of a defined authority;\nB 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;\nC an amount equal to 45% of (T − (A + B)) or £450,000, whichever is greater;\nD (i) for work awarded before 1st April 1994, an amount equal to the cost of specified work which is being carried out following voluntary competitive tendering;\n(ii) for work awarded after 12th December 1997, an amount equal to 125% of the cost of specified work which is being carried out following voluntary competitive tendering;\nE 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;\nF 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—\n(i) no defined authority submitted a bid to carry out that work; and\n(ii) that work had previously been carried out by the defined authority conducting that process or by its predecessor;\nG an amount equal to 45% of the cost of 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 (local education authority required to have scheme for purposes of Chapter V) of the Education Act 1996;\nH (i) until 30th September 2000, an amount equal to the cost of specified work which is being carried out by a defined authority in connection with functional work falling within the defined activity mentioned in section 2(2)(h) of the Act (housing management) where that functional work is not subject to section 6 (functional work: restrictions) of the Act;\n(ii) on and after 1st October 2000, nil;\nJ (i) in relation to a defined authority of the description mentioned in paragraph (2) and for the allowable period applicable to that authority, an amount equal to the cost (including overheads) of work falling within paragraph 12(3)(d) or (e) of Schedule 1 to the Act, where that work has been started before the commencement of the allowable period,\n(ii) in relation to any such authority and for any period other than the allowable period applicable to that authority, nil,\n(iii) in relation to any other defined authority, nil:\nprovided that—\n(a) 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\n(b) 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;;”\n(d) after the definition of “specified work” insert—\n““structural change” means a change, effected by order under section 17 (implementation of recommendations by order) of the Local Government Act 1992, of the description mentioned in paragraph (a) or (b) of subsection (1) of section 14 (changes that may be recommended) of that Act;; ”and\n(e) substitute the following for the definition of “voluntary competitive tendering”—\n““voluntary competitive tendering” means the award (whether or not to the defined authority conducting the process) of work following a competitive process in the course of which at least three persons who are not defined authorities were invited to tender for that work.”.\n(3) With effect from 1st October 1998—\n(a) after “2.” insert “—(1)”; and\n(b) at the end of new paragraph (1) insert—\n“(2) The description for the purposes of—\n(a) the definition of “allowable period”; and\n(b) assigning a value to J in the formula set out in the definition of “the specified proportion”,\nis a local authority which is subject to, or created by, a structural change taking effect on 1st April 1996, 1st April 1997 or 1st April 1998.”.\n(4) With effect from 31st March 1998, in regulation 3 (application of section 6)—\n(a) in paragraph (a), omit the words from “or boundary” to “(“a structural change”)”;\n(b) in paragraph (b), for “1st April 1998” substitute “1st October 1998”; and\n(c) in paragraph (c), for “1st April 1999” substitute “1st October 1999”.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "The definition of “the cost” was substituted by S.I. 1997/175, regulation 3(1)(b)."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "1980 c. 65."
    },
    {
      "type": "footnote",
      "label": "f3",
      "text": "The chapter number of the Education Act 1996 is c.56. Paragraph (h) of subsection (2) of section 2 of the Local Government Act 1988 was inserted by S.I. 1994/1671. Paragraph 12 of Schedule 1 to that Act was added by S.I. 1994/2888."
    },
    {
      "type": "footnote",
      "label": "f4",
      "text": "1992 c. 19."
    },
    {
      "type": "footnote",
      "label": "f5",
      "text": "Regulation 3 was amended by S.I. 1997/175."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1997/2732/regulation/3",
    "retrieved_at": "2026-10-29T11:42:49.691887+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}