§ 1230-u. Contracts. All contracts for construction or purchase of supplies, materials or equipment shall be let by the water board, shall be made in conformity with the applicable provisions of section one hundred three of the general municipal law and section one hundred thirty-five of the state finance law. For the purposes of article fifteen-A of the executive law only, the authority and the water board shall each be deemed a state agency as that term is used in such article, and its contracts for procurement, design, construction, services and materials shall be deemed state contracts within the meaning of that term as set forth in such article. All construction contracts shall be let in accordance with the provisions of state law pertaining to prevailing wages, labor standards and working hours. The water board may, in its discretion, assign contracts for supervision and coordination to the successful bidder for any subdivision of work for which the water board receives bids. The water board shall not award any construction contract except to the lowest bidder who, in its opinion, is qualified to perform the work required and who is responsible and reliable. The water board may, however, reject any or all bids or waive any informality in a bid if it believes that the public interest will be promoted thereby. The water board may reject any bid if, in its judgment, the business and technical organization, plant, resources, financial standing, or experience of the bidder justifies such rejection in view of the work to be performed. Nothing in this title shall be construed to limit or diminish the power of the water board to do any construction directly by the officers, employees or agents of the water board.