Q&As

Does an agreement under section 38 of the Highways Act 1980 have to be accompanied by a bond?

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Produced in partnership with Rosalind Andrews of Harrison Clark Rickerbys
Published on LexisPSL on 05/03/2018

The following Planning Q&A produced in partnership with Rosalind Andrews of Harrison Clark Rickerbys provides comprehensive and up to date legal information covering:

  • Does an agreement under section 38 of the Highways Act 1980 have to be accompanied by a bond?

Does an agreement under section 38 of the Highways Act 1980 have to be accompanied by a bond?

In answering your query, we have considered whether agreements under section 38 of the Highways Act 1980 (HiA 1980) (section 38 agreements) need to be accompanied by a bond.

Section 38 agreements provide a mechanism for landowners to dedicate and for the local highway authority to agree to adopt a road to be maintained at the public expense, provided that the road is built to the required specification. For further information about section 38 agreements, see Practice Note: Highways—adoption agreements.

In a situation where a section 38 agreement is entered into, prior to the road being built, it is common for a local highway authority to require a bond to be entered into in the value of the estimated cost of the works. This enables the local highway authority to draw on the funds in the event that the developer does not complete the works or does not complete the works to the required standard, so that the local highway authority can step in and complete the works.

It is not a legal requirement for this security to be provided by way of a bond, however, the local highway authority will want some form of

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