
1 

(1) This Order may be cited as the Construction Contracts (England) Exclusion Order 2022 and comes into force on 1st October 2022.
(2) This Order does not apply to a construction contract to the extent that it relates to the carrying out of construction operations in Wales.
2 
In this Order, “the Act” means the Housing Grants, Construction and Regeneration Act 1996.
3 

(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.
4 

(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.
Callanan
Parliamentary Under Secretary of State
Department for Business, Energy and Industrial Strategy
15th July 2022