Section 31
Contracts
of Local Authorities Ordinance, 1996
—
(1)
A local authority may enter into contracts necessary for the discharge of any of its functions provided that such contracts do not involve any expenditure in that year in excess of the sums provided in the approved annual estimates for the discharge of such functions unless such expenditure in that year is authorized under this
Ordinance.
(2)
All contracts made by the local authority or by a
Committee thereof on behalf of the local authority shall be made in accordance with any regulations which may be made under this
Ordinance and in the case of contracts for the supply of goods or materials or services or the execution of works the regulations shall require that—
(a)
except as otherwise provided therein tenders shall be called for in such manner as may in such regulations be prescribed; and
(b)
no contract enduring for a longer period than the time elapsing between the making of such contract and the end of the financial year shall be made without the prior written consent of the Minister.