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. A road safety audit must be conducted by the applicant and submitted to us as part of the design review. Before the work is adopted, we will conduct a road safety audit 3. Both courts suggested that the proponent be able to apply the procedure under Section 37 of the 1980 Act if it decided not to enter into a Section 38 agreement. However, the procedure described in Section 37 as an alternative is not safe or simple. It has the advantage of not including the power to pay an amount of commuters to road authorities. The procedure is as follows: the motorway authority (Council) does not have the power to insist that a promoter enter into an S38 agreement. However, many developers consider this also the best option, as the adoption process can be long, and if it takes place at the end of a route, the developer is responsible for all maintenance work until the adoption takes place.
Section 38 of the Highways Act 1980 gives local authorities the power to enter into agreements with developers for the adoption of highways for future maintenance, provided they are built and built in accordance with Council guidelines. In many cases, the scenario is that the developer and landowner agree to a land price and an agreement is reached subject to a satisfactory building permit. These negotiations are taken into account in connection with the costs of developing the costs of building the highway for adoption by the road authorities and, at the time of adoption, it is expected that the additional costs will be those of the road authority. The form of a Section 38 agreement is generally as follows: a developer may complete the construction of a road and then offer it to the road authority under Section 37 of the Highway Act 1980, but the S38 is more desirable because the Commission does not have the authority to insist that a road meet an acceptable standard or that it is then proposed for adoption. However, if an S38 agreement is reached before construction begins, the City Council can ensure that it is built, lit and drained to the appropriate standards.