Regulation 9 Prospective costs

After regulation 14 there is added—

“Indemnities

14A

(1)

For the purposes of this regulation “relevant staff” means the persons who would be dismissed as redundant if the local authority accepted one of the contractors' tenders for the work.

(2)

In a case where this regulation applies, any reasonable amount required from a local authority by a contractor by way of an indemnity against any costs which may be incurred by him by reason of the application of the 1981 Regulations to the contracts of employment of relevant staff shall be a prospective cost.

(3)

This regulation applies where any evaluation made for the purpose of deciding who should undertake or carry out the work takes place on the basis that the 1981 Regulations will not apply to such contracts.”

In regulation 5(a)(i) there is added, after the words “prospective cost”, the words “(other than an amount which is a prospective cost by reason of regulation 14A)”.