Subsidised public works contracts and public services contracts
(a)a contracting authority undertakes to contribute more than half of the consideration to be or expected to be paid under a contract to which this paragraph applies by virtue of paragraph (2); and
(b)the contract has been or is to be entered into by a person other than another contracting authority (in this regulation referred to as “the subsidised body”), that contracting authority shall—
(i)make it a condition of the making of such a contribution that the subsided body complies with the provisions of these Regulations in relation to that contract as if it were a contracting authority; and
(ii)ensure that the subsidised body does so comply or recover the contribution.
(2) Paragraph (1) applies to a contract which, if the subsidised body were a contracting authority, would be—
(a)a public works contract to which these Regulations apply by virtue of regulation 8 and which is for the carrying out of—
(i)any of the civil engineering activities specified in Schedule 2; or
(ii)building work for hospitals, facilities intended for sports, recreation and leisure, school and university buildings or buildings for administrative purposes; or
(b)a public services contract to which these Regulations apply by virtue of regulation 8 for providing services in connection with a contract referred to in sub-paragraph (a) of this paragraph.