Direct procurement for customers projects3
1
A construction contract is excluded from the operation of Part II of the Act if it is a contract for the delivery of a direct procurement for customers project.
2
A contract is a contract for the delivery of a direct procurement for customers project if all the following conditions are fulfilled—
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 are in respect of 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; and
ii
become payable after at least one part of the construction operations is completed and is capable of performing a sewerage or water service.
3
In paragraph (2)—
a
construction operations means the construction operations to which the contract relates; and
b
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 19912.