If you`re in the construction industry, you may have heard of something called an s38 agreement. But what exactly is it, and how can it impact your work? In this article, we`ll explore what an s38 agreement is and why it matters.

An s38 agreement, also known as a Section 38 agreement, is a legal agreement made between a local authority and a developer. Specifically, it relates to the adoption of new roads. In short, an s38 agreement is a way for developers to ensure that their new roads are adopted by the local authority and become maintainable at public expense.

But why is this important? For developers, having their new roads adopted by the local authority can save them a lot of money in the long run. Once a road is adopted, the responsibility for maintaining it falls to the local authority rather than the developer. This means that the developer no longer has to bear the ongoing cost of maintaining the road, which can be significant.

For local authorities, s38 agreements can help ensure that new roads are built to a certain standard. The agreement typically sets out requirements for things like highway design, materials, and construction. By establishing these requirements in advance, local authorities can help ensure that new roads meet their standards and are suitable for adoption.

So what does an s38 agreement actually entail? In general, it will cover things like the scope of the works to be carried out (i.e. the new roads being built), the standard to which the works must be completed, and the timetable for completion. It may also cover other details such as drainage, lighting, and landscaping.

It`s worth noting that s38 agreements are specific to the UK, and are governed by the Highways Act 1980. They are typically used in England and Wales, but not in Scotland or Northern Ireland.

If you`re a developer working on a construction project that involves new roads, it`s important to be aware of the requirements of s38 agreements. Failing to comply with the terms of the agreement can result in delays, additional costs, or even legal action.

In summary, an s38 agreement is a legal agreement between a local authority and a developer relating to the adoption of new roads. It can be an important tool for developers looking to save money on ongoing maintenance costs, and for local authorities looking to ensure that new roads meet their standards. Understanding the requirements of s38 agreements is essential for anyone working in the construction industry.