Section 278 Agreement Meaning

In cases where a road plan requires developers to offer land under their control for acceptance as a highway, please read section 38 Agreements. If the proposed works concern the “strategic road network”, which is the responsibility of Highways England and not the local authority, the S278 agreement must instead be concluded with the Minister for Transport. Such changes must be agreed with the local road traffic authority and carried out to their satisfaction. A legally binding agreement is concluded between the local authority and the developer under section 278 of the Roads Act 1980, so it is called an agreement under section 278 (S278). A section 278 agreement may include: The proponent is responsible for bearing all costs associated with the design and implementation of section 278 agreements. The developer must also post a bond to cover the cost of highway changes, which means that if they do not complete the work satisfactorily, the bond can be used to complete the project. If the proponent enters into the agreement to deliver the work, rather than simply contributing to other work, it is responsible for designing the work to the satisfaction of the board. An S278 agreement usually involves one or more of the following actions: If you need help with a section 278 agreement, feel free to contact our real estate team who will be happy to assist you. In many of our works, you will often find references to an agreement under Section 278 (or S278). A section 278 agreement (or section 278) is a section of the Highways Act, 1980 that allows developers to enter into a legal agreement with Council (in our capacity as a highway authority) to make permanent modifications or improvements to a highway as part of a building permit. It is an established legal principle that a motorway authority cannot unreasonably refuse an agreement concluded under Article 278 to prevent a building permit, which can lead to tensions, especially in non-uniform situations where a motorway authority has opposed an application for construction and is then supposed to take into account motorway modifications. Essentially, the issue of “benefit to the general public” has already been tested during the planning phase, although motorway works must be an integral part of the system. The famous case in which this was tested is known as the “Powergen case”, which can be read on

This is section S278 of the Highways Act 1980 (as amended) and is essentially a formal agreement between a motorway authority and another party to make changes to an existing motorway if it benefits the public in whole or in part (as set out in the agreement) at the expense of the other party. The article is a bit more complicated, but most people will stumble upon this law, where road modifications are made to account for a new development, and the changes are part of a building permit (often subject to detailed design considerations). S278 also allows you to pay an amount for ongoing maintenance called the “pendulum amount”. The document is prepared by the lawyer of the local road authority and given to the developer`s lawyer in the form of a project. The details of the agreement will then be agreed before the conclusion of the final and signed by both parties before the start of work on site. To make these improvements, the proponent must obtain permission from the Highway Authority for detailed planning of the work and enter into an agreement specifying how the work will be delivered. Most of the time, an S278 agreement is used to give development access to the existing road network. However, it can also be used to make improvements to the motorway network that are necessary due to development, or to contribute to future work on the wider motorway network. As a general rule, Section 278 agreements represent the local authority that grants permission to the proponent to carry out the proposed work. Sometimes the road authority does the work, or the developer can pay the road authority to do the work if it suits the developer`s schedule.

The construction application associated with the development generally establishes the principles of the necessary work. The Road Traffic Authority may not then refuse to enter into an agreement for the contracting authority to carry out the approved works, provided that the works meet the appropriate standards. However, it is more common for the developer to hire a contractor with experience in S278 works such as FACE to make the changes to the highways, as if it were the authority itself that does it. An offence occurs when work is carried out on a public highway without an agreement under section 278. As a general rule, a developer is required to bear the cost of the works, in particular if they were designed for development, as well as the costs incurred for the preparation and conclusion of the agreement under Article 278. The developer may also be required to pay a deposit to cover the Traffic Authority against any risk that the developer will not complete the work or complete it to the required standards (especially if a road can be accepted later) or not maintain it during the agreed initial maintenance period (usually 1 year). The road authority can then use the funds contained in the bond to correct the work. The deposit is usually released gradually after the end of a maintenance period after the completion of the work. Section 278 agreements usually include a deposit or cash deposit to cover the cost of the work in the event that the other party defaults in any way, which would allow the road authority to intervene and complete the work at no cost to the public sector (or, in some cases, to make the road as it was). Section 278 of the Highways Act 1980 allows a developer to carry out work on a highway.

This is generally required when a developer has obtained a building permit that requires improvements or modifications to the highway, and the developer and the local authority enter into an agreement under section 278 that governs the manner in which the work is carried out. The package may include motorway works carried out under an agreement under Article 278, drainage construction and earthworks. As a single point of contact for several aspects of the infrastructure, we can offer better coordination of work and minimize possible delays. The procedure required for an agreement can be long and lengthy, and it is therefore desirable to speak to the road traffic authority as early as possible in the project. While the Commission is constantly involved in discussing plans and their timing with proponents, the decision to proceed with a project and enter into an agreement ultimately rests with the proponent, and the Commission has no control over the proponent. provided that the person pays all or part of the cost of the work that can or can be determined in accordance with the agreement. If a developer is required to carry out motorway work as part of its development, its building permit obliges it to conclude a motorway contract to carry out the work. We have particular expertise in representing owners and developers in sections 278 and 38 of the agreements and can assist in the preparation, review and negotiation of these documents. We know that there can often be time constraints to finalize these agreements, as they have a direct impact on development progress, and we recognize the need for rapid action.

S278 can be used for other purposes. For example, a tenant`s management organization (TMO) may want to calm the traffic on their property, but the streets are public roads and are not under their control. S278 would allow the TMO to finance the work to be carried out by the motorway authority – formal agreements are used to ensure transparency. “A motorway authority, if it is convinced that it will be beneficial to the public, can make an agreement with anyone – in Birmingham we usually use the s278 agreements to allow developers to employ a road contractor and work for that contractor on the existing public road in the same way as if we were, the road authority, has carried out works.. .