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S 38 Agreement Bond

By admin

Oct 05

Acceptance means that the motorway authority agrees to carry out the maintenance of the road at public expense from an agreed date. The agreement between the motorway authority and the developer is called the Section 38 agreement. The motorway authority (Council) does not have the power to insist that a developer reject an S38 agreement. However, many developers also consider it the best option, as the adoption process can be lengthy, and when it takes place after a route has ended, the developer is responsible for the complete maintenance until launch. The inability of developers to meet the standards agreed under the Scottish Road Agreement allows the Scottish local authority to guarantee a sum of money from the bond (The Entry into the Loan) needed to finance the completion or correction of the road.

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