Description of works contract to which section 7(1) of the Act does not apply

2.  Section 7(1) of the Act shall not apply to a works contract which satisfies the following conditions—

(a)the contract is made between a local authority and a housing action trust;

(b)the contract provides for the local authority to carry out work for the housing action trust in connection with property which has vested in the housing action trust and which was, immediately before so vesting, in the ownership of the local authority;

(c)the work to be carried out under the contract is of the same description as work which was, immediately before the property so vested, carried out in connection with the property by the local authority as functional work after complying with the requirements of section 9 of the Act(1) and any regulations made under that section in respect of that work;

(d)without prejudice to paragraph (e), the contract does not provide for work to be carried out—

(i)on or after the date when, if the work had continued to be functional work, the local authority would not have been permitted to continue to carry it out unless they had invited further offers to undertake the work in accordance with section 9 of the Act and any regulations made under that section, or

(ii)if that date would have been less than three months after the property vested in the housing action trust, more than three months after the property so vested; and

(e)the contract does not provide for work to be carried out more than 12 months after the property so vested.