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Birmingham City Council

Road Making or Highway Improvement Works (Third Party Works)

Under Construction
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Costs to be paid by the works promoter

The total amount to be paid by the works promoter in accordance with the third party highway works agreement (e.g. Section 38 or Section 278 Agreement) will be reviewed and refined during the drafting of the agreement and preparation of the detailed design.

The legal agreement will state which fees and charges are due at the time of signing the Agreement. Normally fees are payable on completion of the agreement document or at a stage before adoption of the works, NOT upon adoption.

A breakdown of typical costs payable to the Council is as follows:

Design Check / Administration Fee (minimum charge may be applicable) – to cover our internal costs of checking the detailed design and associated documents, such as schedule of works and any orders, and administering the implementation of the third party highway works agreement. This will be according to the published schedule based on a percentage of the estimated works cost. A typical works cost for Section 38 agreement is calculated by the Council project officer based the length of the adoptable highway. The works cost for Section 278 agreements is the full cost of the highway construction/alterations including structures, accommodation works, landscaping, drainage works, any alterations to plant required by statutory undertakers, alteration to traffic signing, street lighting, provision of traffic signals (if applicable), any temporary works, remedial/strengthening works to the existing highway.

Legal costs – for preparing and sealing the legal agreement plus disbursements (money we pay behalf of the works promoter).

Costs of any agreements with other local authorities - under Section 8 (Highways Act 1980) or the Highways Agency (s4 or s6, Highways Act 1980).

Costs of securing any Traffic Regulation Orders - or other orders or notices required by legislation which may include advertising and hearing costs.

Site inspection costs (minimum charge may be applicable) – to cover our costs of inspecting the works including any remedials.

Stage 3 Road Safety Audit – to cover the costs of undertaking the Stage 3 audit once construction is complete and prior to use. For larger or multi-stage works, a number of separate interim Stage 3 RSAs may be undertaken.

Stage 4 Road Safety Audits (RSA), s278 works – to cover the costs of undertaking the Stage 4a RSA which is an accident review following opening to traffic undertaken at 12 months.

Commuted Sums – The estimated cost of maintaining and renewing the additional asset created through the scheme for a period of 30 years. New additions to our highway infrastructure need to be adequately resourced in terms of their future maintenance. For some time we have normally required commuted sums to cover maintenance of such items as unusual street furniture and landscaping (including trees) where they are to be adopted as part of a publicly maintained highway. The basis of calculating these sums may require periodic review.

Other typical costs to be incurred by the works promoter beyond the initial construction works cost include:

Road safety audit remedial works – to cover the cost of taking action to address issues raised in road safety audits.

Remedial works identified - following routine or snagging inspections prior the works becoming maintainable at the public expense.

Contractual Claims – the works promoter may need pay for valid contractual claims arising from the implementation of the works.

Contract Specific Items – these may be identified and / or confirmed during the detailed design, such as statutory undertaker’s works costs.

Claims – to cover the settlement of legitimate liability claims arising from the works.



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