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Section 38 Agreement & New Road Adoption
Expert Section 38 management for developers, main contractors, and housing schemes requiring adoption certainty
You’ve built the roads. Now you need them adopted so you can release bonds, complete final sales phases, and move capital to your next project.
But you’re 18 months past practical completion with a defect list that keeps growing, a highway authority asking for yet another round of remedials, and final sales plots sitting empty because buyers can’t get mortgages on unadopted roads.
Unlock adoption and release retained capital
You need Certificate 3 issued, bonds released, and schemes signed off. Not more delays whilst you chase the original contractor or argue about who’s responsible for drainage issues discovered two years after handover.
We deliver this across the South West, South Wales, and the Thames Valley – managing Section 38 agreements from initial technical approval through to final adoption, or stepping in to resolve backlog schemes where defects are preventing sign-off.
What we can deliver for your site...
Why Section 38 schemes stall, and what it costs you
Every month your adoption stays incomplete costs you money.
Stalled adoptions are more than just an administrative nuisance; they are a drain on your balance sheet. With over £1.1 billion in developer contributions currently sitting unspent in local authority accounts, the system is clogged.
If you are facing 6-12 month delays, you are likely dealing with:
There's a proven way to unlock these schemes...
Schemes adopted, bonds released, capital back working for you. We specialise in fixing what's preventing sign-off
Fixed-fee defect resolution:
We quote a fixed price for resolving your entire defect list and getting Certificate 3 issued. You know your costs upfront, not endless variations and excuses.
One partner for all trades:
Surfacing, drainage, lighting, signage, line marking, landscaping. You're not coordinating six different subcontractors who all blame each other.
Fast turnaround on backlog schemes:
Most defect resolution completed within 12-16 weeks of instruction. Certificate 3 typically issued 8-12 weeks after completion, not years.
Authority liaison handled:
We manage all correspondence, inspections, re-inspections with highway authorities. You're informed, not doing the work.
Documentation sorted:
As-builts, CCTV surveys, testing certificates, health and safety files, commuted sum calculations. Everything required for Certificate 3 delivered to specification.
Bond release progression:
Clear route through Certificate 1, 2, 3 with bond releases at each stage. Your capital comes back progressively, not locked up until the very end.
Why developers and contractors choose Highways Plus
You’re managing multiple schemes, tight cash flow, and boards asking why capital’s still tied up in projects that finished 18 months ago. You need a partner who understands that adoption isn’t a construction challenge – it’s a commercial problem affecting your ROI.
What sets us apart
We've rescued hundreds of stalled adoptions:
Schemes stuck for two, three, five years with defect lists no one would touch. We step in, price it, fix it, get Certificate 3 issued.
Fixed fees, not day rates:
One price for getting your scheme adopted, including all defects, all trades, all documentation. No variations unless you change scope.
We understand the adoption process intimately:
Twenty-five years managing Section 38 agreements means we know exactly what each authority requires, how inspections work, what documentation passes first time.
NHSS accreditation and ISO standards:
We’re certified to the National Highway Sector Schemes standards highway authorities require. ISO 9001, 14001, 45001 quality assurance means work’s done right first time.
Combined Section 38/278 capability:
Need junction works on existing highways alongside your estate roads? We handle both adoption processes as one integrated project.
We manage the SuDS and Section 104 coordination:
Drainage adoption often runs parallel to highway adoption. We coordinate both, ensuring surface water systems meet current standards and get adopted alongside roads.
A clear, structured process that keeps your scheme progressing
Section 38 adoption requires methodical progression through three certificates, each with specific requirements, inspections, and documentation. Careful management at each stage prevents delays and ensures bond releases proceed.
What you get...
Most schemes follow staged delivery – technical approval and agreement formation first, construction with hold-point inspections, then systematic progression through the three-certificate process.
For new schemes: technical approval typically 8-12 weeks, construction timelines vary by size, maintenance period 12 months minimum. For backlog schemes: defect assessment 2-3 weeks, resolution works 12-16 weeks, Certificate 3 typically 8-12 weeks after completion.
Technical submission and agreement formation:
Design review against authority standards, submission preparation with all required drawings and calculations, bond and commuted sum negotiation. Agreement executed, you're ready to build to adoptable standards.
Construction with staged inspections:
Hold-point inspections at base course, drainage installation, kerbing, surface course stages. Issues identified early, not discovered at final inspection two years later.
Certificate 1 (Provisional Completion):
Base layers, drainage, kerbing, lighting installed and inspected. Up to 50% bond released, 12-month maintenance period starts, buildings can be occupied but roads remain your maintenance responsibility.
Certificate 2 (Surface Course Completion):
Final wearing course laid and inspected, remedial works from maintenance period completed. Additional 20-30% bond released, extended maintenance period continues.
Certificate 3 (Final Adoption):
All conditions satisfied - as-builts submitted with CCTV drainage surveys, health and safety files delivered, commuted sums paid, Section 104 adoption confirmed if required. Roads adopted, final bond released, your obligations end.
Section 38 agreement CASE STUDY
Residential development, 47 plots, Somerset - backlog scheme
The Challenge:
- Developer acquired a partially completed housing scheme from administration. Roads substantially built but never adopted. Original contractor liquidated.
- Highway authority defect list included 23 items: drainage gullies not connected, surface course thickness below specification in three locations, street lighting columns missing test certificates, road markings incomplete, as-built drawings not reflecting actual utility diversions.
- Management company charging residents £850 annually. Final seven plots unsold due to mortgage lender concerns about unadopted roads. £340,000 bond held by authority for three years.
Our Solution:
- Fixed-fee defect resolution package covering all 23 items across surfacing, drainage, lighting, and line marking trades.
- CCTV surveys identified all gullies requiring connection work. Coring confirmed surface course depth - resurfaced affected areas to full specification rather than arguing about historic records.
- Lighting testing completed retrospectively with photometric surveys. As-built drawings re-surveyed using existing records and Ground Penetrating Radar to locate actual utility routes.
- Line marking and signage installed to current Traffic Signs Regulations. All works completed with progressive inspections, avoiding a single final inspection that could identify new issues.
The Outcome:
- Defect resolution works completed in 14 weeks against 16-week programme
- Certificate 3 issued nine weeks after completion - scheme adopted after three years stalled
- £340,000 bond released, capital returned to working funds
- Final seven plots sold within four months, generating £1.8 million revenue
- Management company dissolved, residents saved £850 annually
Proven delivery of Section 38 adoption across diverse sectors
Whether you’re developing residential schemes, commercial estates, or mixed-use projects, you need confidence that roads will meet adoptable standards and achieve adoption sign-off without years of defect negotiations.
Sectors that rely on us:
Residential developers:
Housing schemes requiring Section 38 adoption for estate roads. Backlog defect resolution on partially completed schemes, or full adoption management from technical approval through Certificate 3.
Commercial property developers:
Business parks, retail developments, industrial estates where adopted access roads affect property values and mortgage availability. Adoption certainty supporting commercial exit strategies.
Main contractors:
Tier 2 and regional contractors requiring specialist adoption expertise they don’t maintain in-house. Reliable subcontractor for Section 38 compliance and certification progression.
Mixed-use developments:
Complex schemes requiring coordinated Section 38 (internal roads), Section 278 (junction works), and Section 104 (drainage) adoption. Single partner managing all three processes.
Local authorities:
Council-led housing developments and regeneration schemes requiring adoption-standard construction. Public sector procurement experience with full compliance documentation.
Housing associations:
Affordable and mixed-tenure schemes where adoption affects residents’ service charges and property values. Fixed-fee certainty supporting development appraisals.
Your Section 38 agreement questions, answered...
How long does Section 38 adoption take from start to finish?
For new schemes: technical approval 8-12 weeks, construction timeline varies by scheme size, Certificate 1 issued at substantial completion, 12-month maintenance period minimum, Certificate 3 typically 6-12 months after Certificate 2 depending on authority processing times. Total timeline: 18-36 months from agreement formation. For backlog schemes we’re resolving defects on: assessment 2-3 weeks, works 12-16 weeks, Certificate 3 typically 8-12 weeks after completion.
What's your Backlog Defect Resolution service?
Fixed-fee service for schemes stalled at adoption due to outstanding defects. We take over your defect list, price all remedial works across all trades as a single package, complete the works, manage authority re-inspections, and deliver Certificate 3. You get one quote, one invoice, one partner accountable for getting the scheme adopted.
How much does Section 38 adoption cost?
Costs vary significantly by scheme size and complexity. Highway authority fees typically include technical approval fees, inspection fees, and bond administration charges. You’ll also need performance bond (usually 110% of construction value) and commuted sums for ongoing maintenance of non-standard features. For backlog defect resolution, we provide fixed-fee quotes based on your specific defect list. All pricing transparent at quotation stage.
Can you take over schemes where the original contractor's gone?
Yes, this is exactly what our Backlog Defect Resolution service addresses. We’ve rescued dozens of schemes where original contractors liquidated, refused to return, or disappeared. We assess current condition against adoption requirements, price outstanding works, and take full responsibility for getting Certificate 3 issued.
What if we need Section 278 works as well as Section 38?
We manage both. Most residential developments require Section 38 for internal estate roads plus Section 278 for junction improvements on existing highways. We coordinate both adoption processes, manage the different approval routes, and ensure both achieve sign-off. One partner, integrated delivery.
How does drainage adoption (Section 104) work with Section 38?
Highway authorities typically require confirmation of Section 104 drainage adoption (or formal agreement from the water company) before issuing Certificate 3. We coordinate both adoption processes, ensuring surface water systems meet water company standards whilst integrating with highway drainage. Where SuDS features are involved, we manage Lead Local Flood Authority approval alongside highway authority sign-off.
What documentation do you provide for Certificate 3?
As-built drawings in CAD showing all highway features and utility diversions, CCTV drainage surveys for all gullies and sewers with defect reports, street lighting testing certificates and photometric surveys, health and safety files per CDM regulations, asset records using authority-specified templates, commuted sum calculations for non-standard features, confirmation of Section 104 adoption where required. Everything required for Certificate 3 submission prepared to each authority’s specific requirements.
Can you help with schemes where residents are paying management company fees?
Yes. Many backlog schemes have residents paying £500-£1,500 annually for private road maintenance that should’ve ended with adoption. We’ve helped dozens of schemes achieve adoption so management companies can be dissolved and maintenance responsibility transfers to the highway authority. Residents immediately benefit from zero ongoing fees.
How quickly can you mobilise on a backlog scheme?
Initial defect assessment: within one week of instruction. Site meeting with highway authority: typically within two weeks. Fixed-fee quotation provided: 2-3 weeks after assessment. Works mobilisation: typically 3-4 weeks after instruction to proceed, subject to authority inspection availability.
Stuck with a scheme that won't adopt or planning a new development requiring Section 38?
Book a Free, No-Obligation Section 38 agreement Assessment
We’ll review your scheme, assess adoption requirements, identify any barriers to Certificate 3 issuance, and provide a written report with fixed-fee quotation for resolution or adoption management.
No obligation, no sales pressure – just expert advice from specialists w
Call or fill out our form and we'll be in touch within 24 hours.
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