The Advance Payments Code

1. ROAD ADOPTION PROCESS TOPIC GROUPTHE ADVANCED PAYMENTS CODE (APC)Vetti Vettivelu24TH & 25TH FEBRUARY 2010

2. The Advance Payments Code • Requirement of the Highway Act 1980 Section 219-225. • The Code secures payment of the expenses of carrying out street works in private roads next to buildings if developer defaults. • APC is served under s220(3) for Each New Building.

3. HCC and the APC • The APC is not implemented by Hertfordshire County Council and has not been for at least 30 years. • Some districts followed it under highway agency agreements as the necessary communication between planners, building control and highways was much easier in one organisation. • HCC Legal Services team share highway officers view that it would be highly resource-intensive and give little protection against the problems currently besetting Hertfordshire. • Benchmarking against other Highway Authorities show that those following the Code are in the minority and are mostly single-tier authorities.

4. HCC and the APC • Code introduced to guard against the post-war problem of small speculative developers. • Offers little protection for the Highway Authority on today’s large developments where access roads may not have houses on the road and, therefore, not be covered by the Code.

5. Buildings Exempt From APC • Owner of the land on which the building is. • Proposed building within boundary of an existing building. • If a S38 Agreement has been made with the Highway Authority. • Whole street less than 100 yards long and at least 50% built up , or Part of the street, not less than 100 yards and at least 50% built up. • Building on land for or belongs to certain boards, commissions or county and district councils. • Within reasonable time the new street not likely joined to Public Highway. • Five or less residential units forms a Private Street.

6. Advantages of APC • Some protection for Highway Authority as it imposes pressure on developers to have their road works inspected and to move towards the signing of s38 and roads adopted. • Some protection for some frontages should the developer default and they want the roads outside their property bringing up to an acceptable standard.

7. Disadvantages of APC • Applies to frontages only so some stretches of roads (with no frontages) will not be considered. • Some type of development are exempt- additional cost to Highway Authority. • District council would have to inform HCC within one week of passing of building plans under building regulations. If APC is needed, HCC would have to serve notice of the sum required within 6 weeks of the plans being passed.

9. Disadvantages of APC • Resource intensive. Based on individual building assessment and all transactions made under the APC must be registered in the Register of Local Land Charges. • Covers payment of the expenses for carrying out works - not for supervising construction, which is charged separately when the developer seeks discharge (exemption) from APC process. • Could sour relationships with developer on cost and court proceedings.

10. S38 Model - Advantages • Agreement covers all roads to be adopted. • Not as resource intensive. • Developer to pay all costs associated with design checks, safety audits, supervision and legal costs. • Bond - Total costs of works (Tender Price) protection for Highway Authority should the developer go in to administration. • All land owners enter into S38 Agreement- avoid any future claim from land owner.

11. S38 Model - Advantages • No exemption- all roads to be maintained by Highway Authority should be adopted. • Covers commuted payments for future maintenance. • Allows developer and the Highway Authority to work together. • No financial risk or liabilities to the Authorities. • The Agreement offers opportunity to adopt in orderly manner- i.e. large phased developments.

12. Any Queries / Questions