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Section 38,Section 278 & Section104 Agreements

What is a Section 38 (s38) Agreement?

These are Highways Bonds as required by local authorities. Including the Scottish Irish equivalents. A Section 38 is an agreement to ensure the completion and adoption of a new road on a new development. This agreement is voluntary and between a developer and the Council. This agreement contains a bond, which is sufficient to ensure the Council can construct/repair the road if the developer does not.

How do Section 38 Agreements work?

The developers’ proposals are agreed and technical drawings are approved. The Council produces a draft Agreement for the developer to include the developers’ proposals. The developer and their surety for the bond sign the Agreement. The Agreement is then completed by the Council.The agreements are in place to cover developer/contractor failure either by sub-standard works or liquidation of the contracting company prior to completion of the works or adopting the road.

What is a Section 278 Agreement (s278)?

Again a Highways Bond taken out with the local council be the developer for junction alterations. This agreement is voluntary and between a developer and the Council. This agreement contains a bond, which is sufficient to ensure the Council can construct/repair the road junction if the developer does not.

How do Section 278 Agreements work?

The developers’ proposals are agreed and technical drawings are approved. The Council produces a draft Agreement for the developer to include the developers’ proposals for the junction/crossing. The developer and their surety for the bond sign the Agreement. The Agreement is then completed by the Council. The agreements are in place to cover developer/contractor failure either by sub-standard works or liquidation of the contracting company prior to completion of the works

What is a Section 104 (s104)Agreement?

These are sewers bonds as required by local authorities, including the Scottish Irish equivalents . Other highways bonds can also be facilitated. A statutory agreement for adoption, or Section 104 agreement (so called because it is made under section 104 of the Water Industry Act 1991), is an agreement between the owners of a private sewer (usually a developer) and the water authority whereby, subject to the owner constructing the sewer to an agreed standard and maintaining it for an agreed period the water authority will adopt it and it will thereafter become a public sewer.

Other highways bonds not mentioned above can also be facilitated.