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3.—(1) Where, because of major works initiated by an authority, an undertaker(1) executes diversionary works, the authority must pay to the undertaker —
(a)where the major works are major transport works (other than major bridge works or section 86(3) (a) to (g) works) and payment is made in accordance with regulation 8(1), a sum equal to 92.5 per cent of the allowable costs of the diversionary works;
(b)in other cases where payment is made in accordance with regulation 8(1), a sum equal to 82 per cent of the allowable costs of the diversionary works;
(c)in all other cases, the allowable costs of the diversionary works.
(2) This regulation is subject to regulation 6.
“Undertaker” has the same meaning prescribed in section 48 of the Act.
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