7 Exempted works contracts
1 Section 7(1) of the Act shall not apply to works contracts of any of the following descriptions:—
(a) a contract for the carrying out of emergency work;
(b) a contract for the gritting of or the clearing of snow from highways;
(c) a contract which satisfies the following conditions:—
(i) it is a contract for the carrying out of works of new construction, general highway works, or for the construction of a sewer, or it is a contract for works of maintenance to be carried out before 1st October 1990; and
(ii) it is a further contract the value of which does not exceed by more than 10% the value of an earlier contract of a similar description awarded to the local authority at any time in the immediately preceding period of 12 months, and in relation to which the value of each of the separate items of work comprised and priced in the further contract does not exceed by more than 10% the value of each corresponding separate item of work (if any) comprised and priced in the earlier contract; and
(iii) except in the case of a contract for works of maintenance, the work comprised in the contract is to be carried out on the same site or surface as the work comprised in the earlier contract or on sites or surfaces adjacent to those on which the work comprised in the earlier contract has been or is to be carried out.
2 For the purposes of paragraph (1) a contract is an earlier contract if, and only if—
(a) it was made as the result of an invitation to tender which was extended to at least three other persons who are not, or included at least three other persons who are not, local authorities or development bodies;
(b) the local authority submitted the lowest tender following that invitation;
(c) the contract has not been renewed (either by extension or the making of a new contract for work of a similar description) unless the invitation to tender, as a result of which it was awarded, specifically referred to the award to the successful contractor of one or more further contracts.