The regulations pertaining to the highway infrastructure included in a proposed development are s278 and s38 agreements. Section 278 agreements provide developers with the authority to develop existing highway networks by permitting alterations to be made. The agreement will contain comprehensive information regarding the planning permission, design, work schedule, inspection, and associated expenses.
Section 38 agreements pertain to the Highway authority’s maintenance of newly constructed highways; prior to their entry, planning permission must be obtained. The agreement shall encompass comprehensive information pertaining to the planning permission, technical drawings, work schedule, and inspection. An associated fee covers the cost of these elements. In this article, Difference Between S38 And S278 Agreement, we take a look at the process and mechanism involved.
Free Initial Telephone Discussion
For a free initial discussion with a member of our New Enquiries Team, get in touch with us today. We are experienced in dealing with all the legal aspects of S38 and S278 agreements, and once instructed, we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you are on the best possible footing from the start and also avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.
How does a S38 agreement function?
When a developer plans to build a new estate road intended for residential, industrial, or general purpose traffic, Section 38 Agreements (S38) are permissible under the Highways Act 1980. Such roads may be proposed to the Highway Authority for ratification as public highways.
In accordance with Section 37 of the Highways Act 1980, a developer may finalise the construction of a road and subsequently present it to the Highway Authority. Nevertheless, S38 is more preferable, due to the fact that the council has no power to insist that a road is made up to an adoptable standard, or that it will then be offered for adoption. Prior to construction, the council can guarantee that the structure has suitable lighting and is drained, as well as constructed to the appropriate standards, by entering into an S38 Agreement.
It is not within the authority of the Highway Authority (council) to compel a developer to sign an S38 Agreement. However, this is also regarded as the better alternative by a number of developers, given that the adoption process can be protracted, and the developer will be liable for all maintenance until adoption occurs if it occurs after a road has been completed.
The developer will be required to adhere to a section 38 Agreement, which outlines specific conditions, terms, and timeframes. It is secured by a cash deposit or bond calculated by the Highway Authority in accordance with the proposed works. The developer may be required to provide this bond or cash deposit as collateral in the event of liquidation or any other form of default on their obligations.
What is a S278 agreement?
The Highways Act 1980 section 278 agreement (or S278) is utilised when a developer has obtained full planning permission, but the proposed development’s configuration necessitates alterations, reconstructions, or modifications to the adopted highway. A legal agreement between the developer of the land and the Local Highway Authority will be mandatory.
It is a criminal offence to perform any work within a public highway without the Highway Authority’s permission, and construction work affecting the highway should not begin until an S278 agreement has been finalised.
Under the provisions of an S278 agreement, the developer is obligated to adhere to a predetermined schedule, terms, and conditions. The agreement is backed by a pre-determined cash deposit or institution-backed surety bond by the council, which may be required to ensure the completion of the works in the event that the developer enters into liquidation or fails to fulfil their obligations as stipulated in the contract.
The developer must complete a succession of technical checks to ensure that the scheme complies with the council’s design criteria prior to the formation of a S278.
S278 agreements are frequently executed in conjunction with Section 38 agreements (or S38) when a developer intends to build a highway maintained at the public expense and intended for residential, industrial, or general purpose traffic. The council may consider the proposed road for adoption.
How we can help
We have a proven track record of helping clients deal with S38 and S278 agreements. We will guide you through the process and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
How to Contact Our Commercial Property Solicitors
It is important for you to be well informed about the issues and possible implications of S38 and S278 agreements. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.
To speak to our Commercial Property solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
Comments are closed.
