A Section 38 agreement (s38) is a legal agreement under Section 38 of the Highways Act 1980 between a developer and the local highway authority. It governs the construction of new roads, footways, and associated infrastructure within a development that will ultimately be adopted by the highway authority and maintained at public expense.

The s38 process ensures that estate roads are designed and constructed to the highway authority’s adoptable standards, covering:

Road construction: Carriageway width, pavement build-up (sub-base, base course, binder course, surface course), kerb lines, and geometry in accordance with the authority’s design guide
Footways and cycleways: Widths, construction standards, and connectivity to the wider pedestrian and cycle network
Highway drainage: Road gullies, carrier drains, and connections to the public sewer or watercourse (often linked with a Section 104 agreement for sewerage adoption)
Street lighting: Column positions, lantern specifications, and electrical connections meeting the authority’s lighting standards
Road markings and signage: In accordance with the Traffic Signs Regulations and General Directions
Landscaping: Highway verges, trees in highway land, and visibility splay maintenance

The s38 agreement includes a financial bond or surety (typically 150% of the estimated construction cost) that protects the highway authority in the event the developer fails to complete the works. After construction, the road enters a maintenance period (usually 12 months) during which defects are rectified before the final adoption certificate is issued.

S38 agreements run alongside Section 278 agreements where the development also requires modifications to the existing highway network.

Aegaea prepares s38 highway designs as part of our highways engineering service, ensuring designs are adoptable and coordinated with the drainage and utilities layout.

Section 38 Agreement