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Section 106 and 278 Agreements

Section 106 agreements are drafted when the development is expected to have a significant impact on the local area that cannot be moderated by conditions attached to a planning decision. 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. 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 because they directly affect development progress, and we recognize the need for rapid action. Salvatore Amico, Partner and Head of Spatial Planning, has this advice to offer: « These agreements require a thorough and detailed approach. The specifications of all motorway works and the conditions attached to any link must be accurate and precise. We always strive to protect the interests of our clients and ensure that their obligations are clear so that there is no room for disagreement at a later date. In addition, land ownership or ownership issues are also common features of these agreements, and we provide the expertise to resolve them. Highway infrastructure is often an essential component of any proposed new subdivision, and these agreements, which are part of the Roads Act, 1980, are used to make modifications to an existing highway. The need for motorway agreements is often identified in an agreement under Article 106 or in the notice of decision as a condition of start-up or allocation. HiA 1980, Article 278 states that the road authority may enter into an agreement with « any person » – usually the promoter of the associated building permit. However, while a section 106 agreement binds the land on which the development is made and is therefore binding on the landowners, a section 278 agreement refers to the work on the road and not to the land on which the related development (if any) will be carried out.

In cases where a road plan requires developers to offer land under their control for acceptance as a highway, please read section 38 Agreements. Typically, these legally binding agreements cover infrastructure projects that provide access to a development site, such as roundabouts, signposted intersections, right turn lanes, new pedestrian crossings, or priority intersections. They can also cover utility lines, drainage systems and street lighting. Planning Manager/Monitoring Officer S106 is responsible for ensuring that all agreements are finalized prior to the start of the proposed work. In Birmingham, we usually use section 278 agreements to allow developers to hire a road contractor and work for that contractor on the existing highway in the same way as if we, the motorway authority, were doing work. The developer is responsible for all aspects of the work on the highway, from planning to supervising the construction and completing the work to our satisfaction. Under section 278 of the Highways Act 1980 (HiA 1980), a road authority may enter into an agreement with a developer to facilitate the development of a suspected public road. Depending on the agreement, the work can be carried out by the developer, or the agreement can be used as a funding mechanism for the road authority to carry out the work. A section 278 agreement is often associated with a building permit and an associated agreement under section 106 of the Town and Country Planning Act 1990 (TCPA 1990), but this is not necessarily the case. Agreements under Article 106 (S106) are legal agreements between local authorities and developers; these are linked to building permits and can also be qualified as urban planning obligations.

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. • Details of the building permit on the basis of which this work will be carried out • A detailed schedule of the work to be carried out • Details of the deposit or guarantee required • Details of the design or project of the works, usually either the local motorway authority or a consultant motorway engineer working on behalf of the promoter • A full schedule of the cost of the works to be paid by the promoter, as well as administrative, construction and inspection costs incurred • Information on commuting amounts for future maintenance. The content of the S106 agreement will be agreed with the parties concerned and the planning officer during the consultation phase of the construction application. The S106 legal agreement can be prepared by counsel`s lawyers, and plaintiffs must pay the attorney`s fees without VAT. If the proponent does not make the agreed payments or if the work is not carried out in accordance with the agreement, the road authority is authorized to block access to the site. Section 278 agreements are often entered into at the same time as section 38 agreements that allow developers to apply to the Highway Authority to « adopt » new roads and related infrastructure such as drains, lighting and structures. See Article 38 of the Agreement for more information. The proponent is responsible for 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. SRA Code of Conduct for Individuals and BusinessesThis practice note provides guidance on the SRA Codes of Conduct contained in the SRA Standards and Regulations and in effect as of November 25, 2019. SRA standards and regulations include two codes of conduct – a code for registrants, OER and rfL, and a code If the proposed infrastructure requires ongoing maintenance, the contracting process provides for commuting to be obtained to fund the work. In addition to the work itself, the developer may be required to pay the costs associated with the following: If a developer is required to carry out road work as part of its development, its building permit requires it to enter into a road agreement to carry out the work.

If you start working without the required permission, we reserve the right to take legal action against you. The granting of technical approval does not constitute an authorisation for the start of work. If the proposal is a minor development, you have the option to enter into a unilateral commitment instead of a full S106 legal agreement. You must notify us when you start the work so that we can then charge the required contribution fee. Once the contribution is received, we will monitor the Commission`s use of that money to ensure that it is being used for the right purposes. Please note that the monitoring fee is payable at the time of signing the S106 legal agreement. .