Section 278 Agreements: UK Developers’ Costs, Timing, No-Start Rule
A Section 278 agreement is a legally binding contract under the Highways Act 1980 between a developer and the local highway authority, permitting works to the public highway to support a development. The rule that matters most: no works may begin until the agreement is signed, fees are paid, and the required bond or cash deposit is in place.
TL;DR:
Planning permission does not authorize work on an existing public road; contact the highway authority when impacts emerge and check conditions for highway work.
Councils commonly require a Stage 2 road safety audit before technical approval, alongside construction drawings, specifications, legal plans, and specialist lighting or drainage reviews.
Budget separately for advance and supervision fees, legal drafting, possible commuted sums, and a bond or cash deposit; detailed design can raise engineering costs.
Design reviews, legal drafting, and bond arrangements often proceed in sequence, while street works permits and statutory notice periods can delay starts by months.
Use S278 for changes to an existing public highway, S38 for new estate roads, and S106 or CIL for broader planning obligations and infrastructure.
Table of Contents
What does a Section 278 agreement actually cover?
Section 278 of the Highways Act 1980 allows a highway authority, where it judges the work will benefit the public, to enter into an agreement with any person to carry out highway works and to recover the costs involved, including its own administrative expenses. In practice, this is the mechanism that lets a developer fund or deliver changes to an existing public road rather than leaving them to the council.
Works typically covered include new or amended junctions, signalised junctions, right-turn lanes, traffic calming measures, pedestrian and cycle crossings, street lighting, and highway drainage. Any person can offer to fund such works, provided the scheme passes the council’s public-benefit test. Recoverable costs usually include the authority’s administrative time and, where relevant, land acquisition costs tied to the scheme.
When do you need one, and how does it link to planning?
Planning permission for a development often depends on off-site highway works, and those works are usually authorised through a Section 278 agreement rather than through the planning condition alone. A planning consent is not the same as highway consent: even once permission is granted, you still need separate approval from the local highway authority before touching the public road, as confirmed in Birmingham City Council’s guidance on highway works.
Most councils flag the need for an S278 in planning conditions or during pre-application discussions, so it pays to check early rather than assume the planning permission covers everything.
Review your planning conditions for references to off-site highway works or “prior to occupation” triggers.
Contact the local highway authority as soon as a highway impact is identified, not after detailed design begins.
Ask for the council’s own S278 guidance or application form, since requirements vary between authorities.
How does the application and approval process work?
The process is sequential, and skipping a step simply means going back to it later. Doncaster Council’s guidance is explicit that starting works without a signed agreement, paid fees, and secured bond is unlawful, a principle that applies across highway authorities.
Submit the S278 application form with party details, site information, and a list of supporting drawings, following the format set out in Nottingham City Council’s developer guidance.
Go through design review cycles: the council checks drawings against its standards, raises queries, and requests revisions until satisfied.
Pay the advance fee and supervision or inspection fee, which are typically non-refundable and due before meaningful council work begins, as described in Sheffield City Council’s S278 guidance.
Provide the bond of surety or cash deposit and sign the agreement itself. No work on the adopted highway is lawful until both the signature and the security are in place.
Pro Tip: Submit your S278 application alongside your detailed design package rather than after it, since the technical review and legal drafting often run in parallel and this can help keep the overall programme moving.
What technical submissions and safety audits will you need?
Design teams should expect to prepare a full technical package rather than outline drawings. Sheffield’s guidance pack lists construction drawings, a general arrangement plan, a legal plan, specifications, and CAD files that the council retains for its records.
A Stage 2 road safety audit is commonly mandatory before technical approval is granted.
Retaining the same auditor through subsequent design stages helps avoid repeated re-explanation of design decisions.
Street lighting and drainage or SuDS designs often need specialist sign-off, alongside coordination with statutory undertakers for apparatus affected by the works.
Some councils specify particular contractors or checking regimes for street lighting, so it is worth confirming this in the authority’s own guidance before procurement.
How much will it cost, and how is the work secured?
Costs fall into several distinct headings rather than one lump sum. There is the advance fee, a supervision or inspection fee calculated against the estimated value of the works, and legal drafting costs for preparing the agreement itself, all outlined in Surrey County Council’s guidance pack.
Security takes the form of either a bond of surety or a cash deposit, and many councils release this in stages, commonly around 75% at practical completion with the balance held back until the final certificate, a pattern reflected in Newcastle’s developer guidance appendices.
Commuted sums compensate the authority for future maintenance liabilities once the highway is adopted. Calculation varies by agreement, and authorities typically ringfence the funds against the specific asset they cover.
Budget for an advance fee, a supervision fee, legal costs, and a commuted sum where adoption is anticipated.
Build in contingency for additional engineering fees if detailed design increases the estimated cost of works.
What timescales should you plan for?
Design checking rounds, legal drafting, and bond arrangement rarely happen quickly, and council reporting on S278 and S38 agreements, such as Derbyshire County Council’s committee report, shows these milestones often running in sequence rather than in parallel.
Street works permits and statutory notice periods add further time once the agreement is signed, and Nottingham’s guidance notes that these lead times can extend a start date by months if not planned for in advance.
Build slack into your programme for repeated design checks, completion of the road safety audit, and the legal engrossment of the final agreement document. Treating these as fixed, short tasks is one of the most common causes of slipped start dates.
What happens from construction through to adoption?
Once works begin, the council inspects against the approved drawings, and reaching the provisional completion certificate usually reduces the surety held and starts the maintenance period, a structure confirmed in Newcastle’s model agreement appendices.
Maintenance periods vary by authority. Any defects must be rectified before the final certificate is issued, alongside delivery of the health and safety file and any drainage deeds required by the authority. If a developer defaults during a maintenance period, the highway authority typically retains step-in rights, allowing it to complete or rectify the works and recover the cost from the security held.
How does S278 differ from S38 and S106 or CIL?
These three mechanisms solve different problems, and confusing them leads to delays. S278 covers improvements to an existing public highway, funded or carried out by a third party. S38 covers adoption of new estate roads built within a development site. S106 and the Community Infrastructure Levy (CIL) fund wider planning obligations and strategic infrastructure, as set out in St Helens Council’s explainer and government planning obligations guidance.
Councils generally avoid overlapping charges between these routes, often by referencing a Regulation 123 list to prevent an item being funded twice. Where a development includes both new estate roads and alterations to the existing network, councils sometimes combine an S38 and S278 into a single agreement to streamline administration.
What should you actually do first?
Engage the local highway authority and a consulting engineer as early as feasibility stage, not once planning permission is granted. Commission the Stage 2 road safety audit promptly and keep the same auditor involved through later design revisions where the council allows it.
Factor commuted sums and bond contingencies into your cost plan from day one, rather than treating them as a late addition. Finally, make sure whoever delivers the works on site can manage traffic management plans, CDM 2015 duties, and coordination with statutory undertakers under a properly supervised build.
— Florin
How EvoStruct can help deliver your highway works
Coordinating an S278 submission alongside a live construction programme takes a team that can manage design checks, contractor delivery, and council liaison without losing momentum on site. We manage infrastructure works including roads and car parks, and we coordinate directly with local authorities so your S278 obligations move forward alongside the rest of your build rather than stalling it.
We provide detailed project quotes promptly, which matters when a tight programme window is riding on getting started.
Clients can view live virtual tours of active projects before committing, so you can see how we manage workmanship and sequencing on comparable schemes.
We serve developers and landowners across Greater London and Yorkshire, covering both residential and infrastructure projects.
If your development includes highway works that need an S278 alongside the main build, get in touch through our infrastructure services page for a feasibility review and quote.
FAQ
What is a Section 278 agreement in simple terms?
A Section 278 agreement is a legally binding contract between a developer and the local highway authority that permits alterations or improvements to the public highway. It is made under Section 278 of the Highways Act 1980 and is typically required when planning permission depends on off-site highway works.
Can you start highway works before the agreement is signed?
No. Council guidance is explicit that works on the public highway are unlawful until the S278 agreement is fully signed, all required fees are paid, and the bond or cash deposit is secured. Starting early, even informally, puts the whole scheme at risk of enforcement.
What is the difference between S278 and S106?
S278 funds or delivers specific improvements to the existing public highway connected to a development. S106, by contrast, covers wider planning obligations and strategic infrastructure contributions, and councils generally use Regulation 123 lists to avoid charging twice for the same item.
Do you always need a road safety audit for an S278?
A Stage 2 road safety audit is commonly required before a council grants technical approval for an S278 scheme, particularly where junctions or new crossings are involved. Requirements vary by authority, so check the specific council’s guidance pack before finalising your design programme.
How long does the Section 278 process usually take?
Timescales depend on design complexity, the number of review cycles, and legal drafting time, with council reporting showing these stages often run sequentially rather than in parallel. Street works permits and statutory notice periods can add further months once the agreement itself is signed.
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