Paragraph 5

After section 9(4), there shall be inserted—

“(4A)

In the application of subsection (4) above in the exempt period (and any continuation thereof in terms of article 8 of the 1995 Order)—

(a)

where an existing contract (within the meaning of the 1995 Order) has expired; or

(b)

where it is intended to carry out functional work falling within a defined activity to which that Order applies following the expiry or termination of an arrangement with that authority’s direct labour organisation (or similar organisation) or the variation of such arrangement which would constitute a breach of the sixth condition had section 6 above applied; or

(c)

where work falls anew or for the first time within a defined activity,

a local authority shall, before carrying out that work, prepare a detailed specification and shall prepare a bid in terms of section 7(6) above, for a period not extending beyond the end of the exempt period (or any continuation thereof as aforesaid), which bid shall be taken as being the bid referred to in subsection (4) above to carry out that work through that authority’s direct labour organisation (or similar organisation).”.