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The Construction Contracts (Exclusion) (Wales) Order 2023

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Direct procurement for customers projects

3.—(1) Part 2 of the Act does not apply to a construction contract that fulfils the following conditions—

(a)it contains a statement that it is such a contract;

(b)one of the parties to the contract is a sewerage undertaker or a water undertaker;

(c)the construction operations to which the contract relates concern an infrastructure project that is designated by the Water Services Regulation Authority as a direct procurement for customers’ project in accordance with the conditions of appointment of the sewerage undertaker or the water undertaker;

(d)the consideration due under the contract consists, at least in part, of regular payments that—

(i)are determined in part by reference to the actual cost of the construction operations to which the contract relates, and

(ii)become payable after at least one part of those construction operations is completed and is capable of performing a sewerage or water service.

(2) In paragraph (1), “sewerage undertaker” and “water undertaker” mean a sewerage undertaker or water undertaker, as the case may be, appointed under section 6(1) of the Water Industry Act 1991(1).

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