Section 38 Agreement Costs

In their conclusions, both the High Court and the Court of Appeal examined the alternatives available to developers who, for whatever reason, do not wish to enter into an Agreement under Section 38. Both courts have considered Section 37 of the Highways Act of 1980, in which a proponent of law and justice can create a lane as a highway at public expense by making public its proposed dedication. In response, the road authority can either certify that the track has been satisfactorily constructed and warrant acceptance, subject to a 12-month maintenance period and the road actually used as a highway during this period, after which the highway becomes a passable highway at public expense; or the highway authority may apply to the district court for an order confirming that the road does not have an insufficient "public benefit" to justify maintenance at public expense. If the road authority refuses to issue a certificate, the promoter can apply to the district court for an equivalent certificate of effect. To request a copy of an agreement, please call 01604 367988 or 01604 367036 or e-mail Work must be built according to a project and standard agreed by the motorway authority. The proponent is responsible for carrying out the work at its own expense and the maintenance costs until it is adopted. This is based on 100% of the current costs for the authority which must carry out the work itself in order to ensure that the work under the legal agreement can be completed at no additional cost to the Authority. A contractual fee for administration, design technical review and site inspection fees is set at 8.5% of the loan amount and calculated for all section 38 agreements. When work began prior to technical approval and the conclusion of the on-site agreement in accordance with Section 38, the contract commission is increased to 11% of the loan amount. Please note that due to major projects related to the legal agreement, it is generally not possible to provide copies of these documents electronically. Copies of the above agreements are managed by LGSS Law (Northamptonshire Highways` legal service providers). "According to the correct interpretation of Section 38 (6) of the Highways Act 1980, an agreement under Section 38 (3) may contain legal provisions whererability for the party concerned to relate to an amount (whether a redirected amount or otherwise) to the cost of maintaining highways after the date on which it may be maintained at public expense." Lord Dyson did not accept in his judgment that "Section 38 will be a dead letter.