# The Construction Contracts (England) Exclusion Order 2022, Article 3: Direct procurement for customers projects


(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 1991.

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Source: https://www.legislation.gov.uk/ukdsi/2022/9780348235043/article/3 (the official version)
Page: https://openlegislation.uk/draft-construction-contracts-england-exclusion-order-2022/article-3
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.