Section 278 agreements

A Section 278 agreement (or S278) is the section of the Highways Act 1980 that is used when a developer has obtained full planning permission and the layout of the proposed development requires them to modify, alter, or reconstruct the adopted highway. The developer of the land will be required to enter into a legal agreement with the Local Highway Authority (St Helens Borough Council).

The developer should note that it is an offence to carry out any works within the public highway without permission of the Highway Authority and no construction work affecting the highway should commence until a S278 agreement has been completed. 

When an S278 agreement is in place, the developer must operate within a set of terms, conditions, and timescales. It is supported by a cash deposit or institution-backed surety bond that is calculated by the council that may be called upon to complete the works if the developer goes into liquidation or otherwise defaults on their responsibilities as set out within the agreement. 

Prior to the forming of an S278, the developer will have to complete a series of technical checks to ensure that the scheme complies with the council's design criteria.  

S278 agreements are often entered into alongside Section 38 agreements (or S38) when a developer proposes to construct a new road for residential, industrial or general purpose traffic that may be offered to the council for adoption as a highway maintained at the public expense. Further information on S38 agreements 

The developer will be required to deposit an institution-backed surety bond or cash deposit with St Helens Borough Council. This bond ensures that the council does not incur any costs if the highway works are stalled, changed, or aborted by the developer.

Following the completion of the technical approval process the developer will need to submit a copy of the contractors tendered bill of quantities and we will compare this against our own term maintenance contracts rate to insure we have a sufficient bond figure to cover the works. 

The works detailed within the S278 agreement will be staged and following completion of each stage the developer will receive the relevant certificate and there will be a reduction in the value of the surety's bond obligation.  

Agreement Reduction Stages

Design checks and supervision fees 

St Helens Borough Council will charge a fee for the design checks and supervision of the highway works. This fee is currently 10% of the estimated highway works costs (Bond Figure). Should any statutory undertaker's equipment be affected by the modification of the highway works then an additional fee of 4% will be charge that will be calculated using the developer's diversion (C4) costs.                

The council will require an advance non-refundable application fee of £2000 (outside the scope of VAT) to cover the initial costs in respects of our initial comments on the proposals and our submission validation checks. Once the agreement has been completed the application fee of £2000 will be deducted from the design checks and supervision of the highway works agreement fees. 

Legal fees

An additional fixed fee of £1000 will also be required to be paid prior to the completion of the agreement to the council's legal service department. This fee is to cover the costs, associated with the drafting, administration & distribution of the agreement. The draft Section 278 agreement documentation will be forwarded to the developers appointed legal representative for comments once the design checks have been completed. No variation to the wording of the council's model forms of agreement documentation will be accepted. 

The developer should note that should any changes to the agreement be required after the document has been engrossed then an additional fee of £500 will be required to be paid to our legal service department to cover the additional administrative costs. 

Commuted sums 

St Helens Borough Council may seek payment to pay for the future maintenance of the new or revised highway from the developer, acquiring monies via 'commuted sums' where necessary. Commuted sums allow greater flexibility for the highway authority to adopt non-standard materials and other items when development increases the council's future maintenance liability. The cost of commuted sums can vary depending on the asset however the cost is generally set at a minimum liability period of 25 years maintenance per asset. 

Items that generate commuted sums figures are generally items that are non-standard highway assets; for example, highway structures, highway verges, urban traffic control (UTC) equipment, street furniture, bridges, drainage, trees and specialist surfacing. Developers should discuss their requirements with St Helens Borough Council's highways and transport planning department, prior to a full planning application. 

The council will provide the commuted sum figures upon completion of the technical approval process and all commuted sum figures will be payable upon completion of the Section 278 agreement. 

Payment methods 

Payments can be made by Standing Order, Online Bank Transfer or BACS using our bank account details shown below or alternatively, you may pay via an official council invoice. Please ensure you have obtained a payment reference prior to making any payments and quote this on all payments / correspondence. Payment references can be obtained by contacting St Helens Borough Council's highways and infrastructure service. Email: Highwayadoptions@sthelens.gov.uk or alternatively by telephone: 01744 673303. 

Account Name: St Helens Council 
Sort Code: 60-70-08 
Account No: 94231397 
Bank Name: National Westminster Bank 
Bank Address: 5 Ormskirk Street, St Helens, Merseyside, WA10 1DR