Section 278 Agreement Example: What You Need to Know

If you’re a developer or planning on undertaking a construction project, you’ve probably heard of a Section 278 agreement. But, you might be wondering what it is and how it works. In this article, we’ll take a closer look at a Section 278 agreement example to help you understand everything you need to know.

What is a Section 278 Agreement?

A Section 278 agreement is a legal agreement between a developer or project manager and the local highway authority. This agreement is made under section 278 of the Highways Act 1980 and relates to improvements to the public highway that are necessary because of a development.

The purpose of this agreement is to ensure that the local highway authority is satisfied with the design and construction of any works that will affect public roads or highways. It’s also aimed at ensuring that the developer takes full responsibility for the cost of these works.

Examples of Section 278 Agreement

Here are some examples of Section 278 agreement:

1. A developer is building a new housing development on the outskirts of a town. The development will involve significant changes to the local road network, including new roundabouts, traffic signals, and pedestrian crossings. In this case, the developer would be required to enter into a Section 278 agreement with the local highway authority to ensure that the improvements are designed and constructed to a suitable standard.

2. A supermarket chain is planning to build a new store on a piece of land that is currently an undeveloped industrial estate. The site is located on a major road network and the development will require significant road improvements to ensure that traffic flow is maintained. In this scenario, the developer would need to enter into a Section 278 agreement to ensure that the road improvements are carried out to the satisfaction of the local highway authority.

What are the Benefits of a Section 278 Agreement?

There are several benefits of entering into a Section 278 agreement, including:

1. Compliance with regulations: A Section 278 agreement ensures that all improvements to the public highway are constructed in compliance with the relevant regulations and standards.

2. Better communication: By entering into this agreement, the developer and the local highway authority can work together to ensure that the road improvements are carried out smoothly, with clear communication lines in place.

3. Reduced liability: Under a Section 278 agreement, the developer is responsible for the cost of the road improvements, which means that the local highway authority is protected from any financial liability.

Conclusion

A Section 278 agreement is an essential legal agreement that any developer should consider when undertaking a construction project. It helps to ensure that all necessary road improvements are carried out to a suitable standard and offers a clear communication line between the developer and the local highway authority. Remember, careful planning and a Section 278 agreement can help to ensure your project runs smoothly and avoids any unnecessary delays or costs.