Under Highways Act 1978, at p. 278, if the road authority is satisfied that it is favourable to the public, it may enter into an agreement with a third party for: examples of work under section 278 (s278), under which the person pays all or part of the cost of the work that can be determined or determined in accordance with the agreement. From time to time, individuals and businesses applying for building permits must enter into agreements with the municipality to carry out work on the highway in order to meet the new construction. This can be done where the development is for a new building or even for a change of use. These motorway agreements may require minor work, such as the construction of a transportation island or the construction and adoption of new public highways, and are carried out in accordance with Sections 278 and 38 of Highway 1980. Since the AAH cannot claim VAT refund under Article 41(3) of the VAT Act 1994, one of the conditions of the Article 278 agreement is that the contributions received contain an irrecreative VAT. In Birmingham, we normally use s278 agreements to allow designers to employ a contractor in road construction and for that contractor to work on the existing public highway, as we, the motorway authority, would carry out work. The proponent is responsible for all aspects of the public highway work, from planning to monitoring the construction and ensuring that the work is completed to our satisfaction. We have specific action expertise for owners and developers in sections 278 and 38 and can assist in the drafting, verification and negotiation of these documents. We know that there can often be time constraints in concluding these agreements, as they have a direct impact on development progress, and we recognize the need for rapid action. Any work carried out by an AAH under an agreement under Section 278 is a non-commercial activity for VAT purposes.
Under Highway 1980, the HA is responsible for maintaining the road on which the work is being carried out. The construction work is therefore part of the AAH`s legal responsibility for the preservation of the road. When a developer is required to carry out highway work in connection with its development, its development permit requires that it enter into a motorway agreement to carry out the work. Highway infrastructure is often a critical element of any proposed new residential construction and these agreements, which are part of the Highways Act of 1980, are used to make modifications to an existing public highway. The need for motorway agreements is often identified in an agreement provided for in point 106 or in the notice of decision as a precondition for pre-work or the profession. The design of the construction will be defined during the design phase, including the type of crossing required to allow access to the public highway, as well as the proposed configuration of inland roads. Once the building permit has been obtained, the local planning authority cannot refuse to enter into an agreement for the developer to carry out the necessary road works to facilitate their development, provided that all appropriate planning and safety standards are fully respected and respected. Lawson Lewis Blakers has expertise in highway agreements with local authorities and our commercial lawyers have extensive experience in managing Section 278 agreements for construction work and Section 38 highway acceptance agreements. The document is prepared by the lawyer of the local highway authority and issued to the developer`s lawyer in the form of design.