3.—(1) In this Part “works contract” means—
(a)in the case of construction and maintenance work, a contract which is or comprises—
(i)an agreement under section 105 of the principal Act which provides for the carrying out of such maintenance work as is mentioned in subsection (1)(d) of that section; or
(ii)an agreement made under any other statutory provision which provides for the carrying out by a council of any construction or maintenance work;
(b)in any other case, subject to paragraph (2), a contract constituting or including an agreement which provides for the carrying out of work by a council; and “functional work” means—
(a)work carried out by a council, other than work carried out under a works contract; and
(b)work which is carried out otherwise than by a council but which is dependent upon, or incidental or preparatory to, other work which, by virtue of sub-paragraph (a), is functional work in relation to that council; and work carried out as mentioned in sub-paragraph (b) shall be treated as carried out by the council.
(2) A contract is not a works contract if it constitutes or includes an agreement providing for a council to discharge the functions of a government department or another council.
(3) If and so far as the provision by a council of goods, materials, services, vehicles, plant or other equipment which is incidental to a works contract is the subject of a separate agreement, that agreement shall be treated as part of the works contract for the purposes of this Part.