Section 38 Agreement Costs

Once the contract fee is fully paid, the design testing of the development details begins. On-site verifications will not begin until the contract fees have been paid in full. At Redrow Homes, Knowsley Metropolitan Borough Council, as the motorway authority, refused to enter into an agreement under Section 38 on the acceptance of country roads for a development of 525 houses unless it contained a provision that Redrow would pay £39,000 for the estimated costs of future maintenance of street lights on country roads. Such a provision has been found to be legal by both the High Court and the Court of Appeal.