Taxation and Regulatory Compliance

What Is a Section 278 Agreement for Highway Works?

Understand the legal framework enabling developers to fund and deliver the essential modifications to the public highway required for a new project.

A Section 278 agreement is a legal instrument under the United Kingdom’s Highways Act 1980. It allows a real estate developer to fund and execute works on a public road when a new development requires changes to the existing highway infrastructure. This mechanism connects private development to public infrastructure under the supervision of a local highway authority.

The developer enters into this formal legal contract with the authority, which grants permission for the works. This process ensures that all alterations meet required safety and construction standards. The developer is responsible for all costs associated with the project, from initial design to final construction and future maintenance, ensuring any impact is properly managed.

Scope of Highway Works

A Section 278 agreement covers a range of physical alterations to the public highway system required to support a new development. These works are intended to manage changes in traffic patterns and ensure public safety. The scope is determined by the specific needs created by the development project and is agreed upon with the local highway authority.

These works include the construction of new access points or junctions to connect a development site to the main road network. This can involve creating a simple priority junction, a bell mouth entrance, or more complex structures like a new roundabout or a signalized intersection. These improvements are designed to integrate traffic from the new development smoothly and safely into the existing flow of vehicles.

Other modifications may involve enhancements for pedestrian and cyclist safety. This could include the installation of new pedestrian crossings, traffic signals, or dedicated cycle lanes near the development. The agreement can also cover the realignment of existing roads, the addition of right-turn lanes, or improvements to street lighting and drainage systems.

Information Required for an Agreement

Before a Section 278 agreement can be formalized, a developer must compile a comprehensive package of information for the highway authority’s review. This preparatory phase is centered on demonstrating the technical viability and safety of the proposed works. The submission must provide a complete picture of the project, allowing the authority to assess its impact and compliance with established standards.

The core of the submission consists of detailed technical drawings and engineering plans for the proposed highway modifications. These plans must be accompanied by a Road Safety Audit, which independently assesses the safety implications of the new design for all road users. A traffic impact assessment is also necessary to model how the development will alter vehicle and pedestrian flows in the area.

Developers must also provide detailed cost estimates for the entirety of the works, including construction, supervision, and administrative fees charged by the authority. Information about the proposed contractor who will perform the work is required, as the highway authority must approve their qualifications. The developer must also secure a performance bond, which is a financial guarantee that the works will be completed to the required standard.

The Agreement and Works Process

The highway authority undertakes a detailed technical vetting of the developer’s submission. Engineers and planners review the proposed designs for compliance with national and local standards, safety regulations, and overall suitability. This stage may involve requests for additional information or revisions to the plans before technical approval is granted.

Following technical approval, the authority’s legal department drafts the formal Section 278 agreement. This legal document outlines the responsibilities of both the developer and the authority, specifies the scope of works, sets timelines, and details the financial arrangements, including the bond.

After the agreement is signed by both parties and the performance bond is secured, the developer’s approved contractor can begin construction. All work on the public highway is performed under the supervision of the highway authority, which conducts regular inspections to ensure compliance before finally signing off on the completed project.

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