Securing planning permission is a significant step in any development project, but it is often only part of the process. Depending on the nature and location of your development, you may also need to enter into a Section 278 Agreement before construction can begin.
Whether you’re developing a new housing estate, commercial premises, retail development, or mixed-use scheme, understanding your obligations under a Section 278 Agreement can help you avoid delays, unexpected costs, and compliance issues.
One of the questions we are frequently asked is:
“What is a Section 278 Agreement, and do I need one?”
The answer depends on whether your development requires work to be carried out on the existing public highway. If your proposal includes new road junctions, access roads, traffic signals, pedestrian crossings, or other highway improvements, your Local Highway Authority may require a Section 278 Agreement before those works can proceed.
At Charrette Law, we advise developers, landowners, investors, and businesses on planning obligations and highway agreements. Whether you’re negotiating a new Section 278 Agreement, reviewing development obligations, or purchasing land affected by highway requirements, our experienced planning lawyers can help you understand your legal responsibilities and protect your commercial interests.
In this guide, we’ll explain what a Section 278 Agreement is, when it’s required, how it differs from other planning agreements, and why obtaining legal advice early can help your project progress smoothly.
What Is a Section 278 Agreement?
A Section 278 Agreement is a legal agreement made under Section 278 of the Highways Act 1980 between a developer and the Local Highway Authority.
It allows developers to carry out or fund works on the existing public highway that are necessary to support a proposed development.
These highway works are often required because a development will increase traffic, create new access points, or require improvements to ensure the safety and efficiency of the surrounding road network.
Common highway works delivered through a Section 278 Agreement include:
- New road junctions.
- Roundabouts.
- Traffic signal upgrades.
- Pedestrian crossings.
- Cycle lanes.
- Road widening.
- New access roads.
- Street lighting.
- Bus stops.
- Highway drainage improvements.
Without a completed Section 278 Agreement, developers may not be permitted to carry out these works, which can delay the implementation of planning permission.
At Charrette Law, we advise clients on negotiating and reviewing Section 278 Agreements, ensuring they fully understand the legal obligations associated with highway works before development begins.
When Is a Section 278 Agreement Required?
Not every development requires a Section 278 Agreement.
These agreements are generally necessary where proposed works will directly affect the public highway maintained by the Local Highway Authority.
You may require a Section 278 Agreement if your development involves:
- Creating a new vehicle access.
- Altering an existing junction.
- Constructing a new roundabout.
- Installing traffic signals.
- Widening an existing road.
- Creating pedestrian or cycle infrastructure.
- Modifying highways to accommodate increased traffic.
- Improving visibility splays.
- Highway safety improvements linked to Planning Permission.
The exact requirements will depend on the scale of the development and the recommendations of both the Local Planning Authority and the Highway Authority.
At Charrette Law, we help clients understand whether highway agreements are likely to be required and advise on the legal implications before planning obligations are finalised.
Planning a Development That Affects the Highway?
If your proposed development requires alterations to the public highway, obtaining legal advice early can help prevent unnecessary delays during the planning process.
Our experienced planning lawyers can review proposed highway obligations, explain your legal responsibilities, and work with you throughout the negotiation process.
Contact Charrette Law today to discuss your development with one of our experienced planning lawyers.
Section 278 Agreement vs Section 106 Agreement
Section 278 Agreements are often confused with Section 106 Agreements, but they serve different purposes.
A Section 278 Agreement relates specifically to works carried out on the public highway.
A Section 106 Agreement, on the other hand, is a planning obligation used to mitigate the wider impact of a development, such as providing affordable housing, education contributions, healthcare funding, or public open space.
Some developments require only one of these agreements, while larger developments may require both.
If you’re unfamiliar with planning obligations generally, you may also find our guide on Section 106 Agreements helpful. It explains when planning obligations arise and how they can affect the viability of your development.
At Charrette Law, we advise clients on both Section 278 and Section 106 Agreements, helping ensure planning obligations are properly understood before contracts are signed.
Who Is Responsible for the Highway Works?
Although the highway is maintained by the Local Highway Authority, the developer is usually responsible for funding the works required under a Section 278 Agreement.
This may include:
- Design costs.
- Construction costs.
- Highway Authority inspection fees.
- Legal costs.
- Traffic management costs.
- Maintenance periods.
- Financial bonds or guarantees.
Because these obligations can represent a significant proportion of development costs, it’s important to understand exactly what you’re agreeing to before the agreement is completed.
At Charrette Law, we review draft Section 278 Agreements and advise clients on the legal and commercial implications of their highway obligations.
Why Early Legal Advice Matters
Section 278 Agreements often involve substantial financial commitments, technical requirements, and coordination with multiple public authorities.
We’ve advised clients who assumed highway works could be completed after planning permission was granted, only to discover that construction could not lawfully proceed until the necessary highway agreements had been finalised.
Obtaining legal advice early helps identify potential issues before they affect project timelines, budgets, or contractual obligations.
At Charrette Law, we work closely with developers, landowners, and planning professionals to provide commercially focused legal advice that supports successful developments while reducing unnecessary delays.
Can a Section 278 Agreement Be Changed?
In some circumstances, a Section 278 Agreement can be amended, but this is rarely a straightforward process. Once an agreement has been completed, any proposed changes will usually require the approval of the Local Highway Authority and may involve further legal documentation.
Changes may become necessary where:
- The design of the development changes.
- Highway layouts need to be revised.
- Construction costs increase significantly.
- Planning permission is amended.
- Highway Authority requirements change during the project.
Each case will depend on the terms of the original agreement and the nature of the proposed amendments. Early discussions with the Highway Authority, supported by legal advice, can often help avoid unnecessary delays.
At Charrette Law, we advise developers and landowners on various Section 278 Agreements, ensuring any proposed amendments are legally compliant and aligned with the overall development strategy.
What Happens If You Fail to Comply with a Section 278 Agreement?
A Section 278 Agreement is a legally binding contract. Failing to comply with its terms can have serious consequences for both the development and the developer.
Depending on the circumstances, non-compliance may result in:
- Delays to the commencement or completion of the development.
- Refusal to approve highway works.
- Enforcement action by the Highway Authority.
- Financial penalties or claims for outstanding obligations.
- Delays in adopting completed highway works.
- Additional legal and professional costs.
In some cases, failing to complete agreed highway improvements can also affect the occupation of completed buildings or the release of financial bonds.
At Charrette Law, we help clients resolve disputes relating to highway agreements, advise on compliance issues, and work to minimise disruption to development programmes.
Purchasing or Developing Land?
Before purchasing land or commencing construction, it’s important to understand whether any highway obligations already affect the site.
Our planning lawyers can review existing planning agreements, explain your legal responsibilities, and identify potential risks before contracts are exchanged or development begins.
Contact Charrette Law today for practical legal advice tailored to your project.
Common Challenges Developers Face
Negotiating and implementing a Section 278 Agreement can be one of the more complex stages of a development project.
Some of the issues developers commonly encounter include:
- Lengthy negotiations with the Highway Authority.
- Unexpected highway improvement costs.
- Delays in obtaining technical approvals.
- Disputes over the scope of highway works.
- Financial security or bond requirements.
- Coordination between planning permission and highway approvals.
- Delays caused by changes to the development design.
- Confusion over responsibilities for future highway maintenance.
Many of these challenges can be reduced through careful planning and early legal advice.
At Charrette Law, we work closely with developers, planning consultants, engineers, and other professionals to ensure highway agreements are managed efficiently and in line with the wider objectives of the project.
How Section 278 Agreements Fit Into the Planning Process
Section 278 Agreements are only one part of the wider planning system.
Depending on your development, you may also need to consider planning obligations under a Section 106 Agreement, respond to planning objections, or appeal a planning decision.
For example, if your planning permission is accompanied by wider planning obligations, our guide on Section 106 Agreements explains how those legal agreements differ from highway agreements and when both may be required.
If your planning application has been refused, our Planning Appeal guide explains how decisions can be challenged through the Planning Inspectorate.
You may also find our Planning Objections guide helpful if neighbouring property owners or interested parties have raised concerns during the planning application process.
Understanding how these different legal processes work together can help reduce delays and ensure your development progresses more efficiently.
Why Choose Charrette Law?
Planning and highway agreements can have a significant impact on the cost, timing, and overall success of a development.
At Charrette Law, we provide practical, commercially focused legal advice to homeowners, developers, landowners, investors, and businesses on all aspects of planning law.
Our services include:
- Advising on Section 278 Agreements.
- Reviewing and negotiating highway agreements.
- Advising on Section 106 Agreements.
- Planning appeals.
- Planning objections.
- Planning conditions.
- Development agreements.
- Property and planning law advice.
We understand that every development is unique. Our approach is to provide clear legal advice that helps clients minimise risk, comply with planning requirements, and move their projects forward with confidence.
Speak to Charrette Law About Your Section 278 Agreement
If your development involves alterations to the public highway, obtaining legal advice at an early stage can help avoid costly delays, unexpected obligations, and disputes with the Highway Authority.
At Charrette Law, our experienced planning lawyers advise developers, landowners, investors, and businesses on every stage of the Section 278 process. Whether you’re negotiating a new agreement, reviewing highway obligations, or seeking advice on an existing development, we’ll help you understand your legal position and protect your commercial interests.
Contact Charrette Law today to arrange a consultation and discuss how we can support your development project.
Frequently Asked Questions
What is a Section 278 Agreement?
A Section 278 Agreement is a legal agreement made under the Highways Act 1980 between a developer and the Local Highway Authority. It allows developers to carry out or fund works on the existing public highway that are required to support a development.
When is a Section 278 Agreement required?
It is typically required where a development involves changes to the public highway, such as creating a new access road, installing traffic signals, constructing a roundabout, or carrying out highway safety improvements.
What is the difference between a Section 278 Agreement and a Section 106 Agreement?
A Section 278 Agreement deals specifically with works to the public highway, while a Section 106 Agreement secures planning obligations that mitigate the wider impact of a development, such as affordable housing or infrastructure contributions.
Who pays for the highway works?
In most cases, the developer is responsible for funding the highway works, including design, construction, inspections, legal costs, and any financial security required by the Highway Authority.
Can a Section 278 Agreement be amended?
Yes. Depending on the circumstances, a Section 278 Agreement may be varied with the agreement of the Local Highway Authority. Legal advice is often recommended to ensure any amendments are properly documented.
What happens if I breach a Section 278 Agreement?
Failure to comply with the agreement may result in enforcement action, delays to the development, financial consequences, or disputes with the Highway Authority.
Do all developments require a Section 278 Agreement?
No. These agreements are generally only required where the proposed development affects the existing public highway. Whether one is needed will depend on the scale and nature of the project.
How can Charrette Law help?
At Charrette Law, we advise developers, landowners, investors, and businesses on all aspects of Section 278 Agreements. From negotiating terms and reviewing obligations to resolving disputes and advising on compliance, our experienced planning lawyers provide practical legal support to help your development progress smoothly.
