2023 No. 475 (W. 71)
The Construction Contracts (Exclusion) (Wales) Order 2023
Made
Coming into force
The Welsh Ministers, in exercise of the powers conferred on them by sections 106A(2) and 146(1) of the Housing Grants, Construction and Regeneration Act 19961, make the following Order.
In accordance with section 106A(4)(b) of that Act, a draft of this Order was laid before and approved by a resolution of Senedd Cymru.
Title, application and commencement1
1
The title of this Order is the Construction Contracts (Exclusion) (Wales) Order 2023.
2
This Order applies in relation to a construction contract to the extent that it relates to the carrying out of construction operations in Wales.
3
This Order comes into force on 5 May 2023.
Interpretation2
In this Order—
“the Act” (“y Ddeddf”) means the Housing Grants, Construction and Regeneration Act 1996;
“construction contract” (“contract adeiladu”) has the meaning given in section 104 of the Act;
“construction operations” (“gweithrediadau adeiladu”) has the meaning given in section 105 of the Act.
Direct procurement for customers projects3
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 19912.
Direct procurement for customers project sub-contracts4
1
A construction contract is excluded from the operation of section 110(1A) of the Act if it is a contract pursuant to which a party to a relevant contract has sub-contracted to another person some or all of its obligations under that contract to carry out, or arrange that others carry out, construction operations.
2
In paragraph (1), a relevant contract is a contract excluded from the operation of Part 2 of the Act pursuant to article 3.
(This note is not part of the Order)