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Paragraph 2

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

Having regard to the particulars of the bid and each qualifying tender, the local authority shall calculate or estimate for each year of the contract—

(a)

the amount, excluding the amount of any allowable costs, which the local authority would pay to the credit of the account of the direct service organisation, if it accepted the bid, and

(b)

the amount of fees and expenses which the local authority would be bound to pay to the contractor if it accepted his qualifying tender for the work;

(c)
(i)

the amount by which the value of the sum of the credit and the apportioned notional premium exceeds the fee,

  • or, as the case may be,

(ii)

the amount by which the fee exceeds the value of the sum of the credit and the apportioned notional premium.