At Grant Saw Solicitors, we advise property developers, landowners and investors across London and the South East on Section 104, Section 106 and Section 278 agreements. These planning and infrastructure agreements are critical to the success of development projects and require specialist legal advice.

Section 104 Agreements – sewer adoption

A Section 104 Agreement is governed by the Water Industry Act 1991 and allows newly constructed private sewers and pumping stations to be adopted and maintained by the local sewerage authority.

Key Features of a Section 104 Agreement:

Agreement must be completed before construction begins
A technical vetting and administration fee of 2.5% of estimated construction costs
A bond of 10% of construction costs is mandatory
Works must comply with the Sewers for Adoption standards
As-built drawings must be provided
A maintenance period (usually 3–12 months) applies before final adoption

Where connection to the public sewer is required, a Section 106 Water Industry Act application must also be made.

Section 106 Agreements – planning obligations

A Section 106 Agreement is a legally binding planning obligation under the Town and Country Planning Act 1990. It is used to mitigate the impact of a development on the local community where planning conditions alone are insufficient.

Typical Section 106 Obligations Include:

Affordable housing contributions
Public open or green spaces
Education or healthcare contributions
Transport and infrastructure improvements
Public art and community facilities
Financial payments to the local authority
Exclusion of the right to a residential parking permit

Legal Requirements

Planning obligations must:

Be necessary to make the development acceptable
Be directly related to the development
Be fair and proportionate in scale

Selling property subject to a Section 106 Agreement

Properties subject to Section 106 restrictions can still be sold. A specialist planning solicitor can advise on:

Time-limited local occupancy conditions
Discount market value restrictions
First-time buyer or key worker provisions
Valuation requirements

Early legal advice helps avoid delays and aborted sales.

Section 278 Agreements – highway works

A Section 278 Agreement, governed by the Highways Act 1980, is required where a developer carries out works to public highways.

Common works covered:

New access roads or junctions
Highway alterations near the site
Pedestrian and cycle infrastructure
Traffic calming and signal systems

The developer funds:

Construction costs
Council application and inspection fees
A performance bond or commuted sum

Highway works can only begin once the agreement is signed and pre-commencement conditions are satisfied.

Section 278 vs Section 38 Agreements

Section 278: Developer alters existing public highways
Section 38: Developer builds a new road for future adoption

While councils cannot force a Section 38 Agreement, it often benefits developers by expediting adoption and reducing maintenance risk.

Why choose Grant Saw Solicitors?

We are trusted planning and development solicitors with extensive experience advising on:

Section 104 sewer adoption agreements
Section 106 planning obligations
Section 278 highway agreements
Negotiation with local authorities
Bonds, commuted sums and enforcement issues

We act for developers across London and the South East.

Contact our planning and development solicitors

To discuss Section 104, Section 106 or Section 278 agreements, contact our experienced development team today. For more information, feel free to email us or contact us on 020 8858 6971.