Section 38 Agreements are required where a new  development requires highways works to be carried out away from the the  existing adopted highway, but where the developer wishes the Local  Council to agree to adopt the new highway after it is completed and  maintain it at public expense .The Council has powers under the  Highways Act of 1980 to enter into agreements with developers or other  persons to adopt highways for future maintenance provided they are  constructed to the Local Council’s specification.The Councils  specification is designed to future maintenance costs are kept to a  minimum. The adoption of a highway relieves the developer from their  liability to maintain that highway.Developers may enter into an  Agreement under Section 38 of the Highways Act with the Council to  ensure that the new highways are adopted. Fees are paid in advance  according to the size of the development to cover the Council’s costs  in  preparing the Agreement and inspecting the work during construction.  A bond is deposited to cover the cost of bringing the road up to an  adopt able standard should the developer become insolvent or is unable  to meet their obligation.
Section 184 clauses of the Highways Act  will normally be incorporated into a Section 38 Agreement to cover the  construction of, or improvements to, the bellmouth or other forms of  access within the existing public highway, where the County Highway  Authority considers this work to be of a minor nature.The  developer may also be required to deposit a secured bond with the  Highway Authority to the value of the highway works plus an element to  take account of likely additional inflationary costs. Where a developer  deposits a bond or payment with the Highway Authority for the  construction of the roads under Section 219 of the Highways Act 1980 -  the Advance Payments Code - then such a bond or payment may be  transferable to the Section 38 Agreement.The developer will  usually be required to pay a commuted sum to enable the Highway  Authority to adequately maintain the works after completion, usually for  a period of 10 years.Different Local Councils operate in slightly different ways so the aforementioned is a generic outline of the procedure.
If you need help with your Section 38 Agreements. Contact one of our civil engineering consultancies.