Development control fees - section 38 and section 278

Fees increased with effect from 1st June 2008 to the following maximum rates:


Section 38 − Increase from 7.5 per cent to 8.5 per cent of total estimated cost of work

All Section 38 Agreement anticipate that developer works will be completed within 2 years.

  • In the event that works associated with a Section 38 Agreement have not been completed within 2 years then a further fee of 4.25 per cent should be levied to cover inspection and administration between years 2 and 4

  • if incomplete after 4 years − levy a further charge of 4.25 per cent

  • if incomplete after 6 years − call in the bond and complete the works using the bond sum

  • where agreements have not previously been extended at the end of two years the council will seek the reasonable reimbursement of any additional costs it may have incurred with reference to the council schedule of fees and charges

  • that in the event the developers ongoing development works cause damage to highways already adopted and maintained by the council and within the development, the council take action to recover the costs of correcting the damage under Section 59 of the Highways Act 1980 − Recovery of expenses due to extraordinary traffic.

Section 278 − Increase of total estimated cost of work

Section 278 − Increase of total estimated cost of work.
ValueFromTo
Less than £1,000from £250to £300
Less than £5,000from £1,000to £1200
Less than £10,000from £1,500to £1800
£10,000 to £200,000from 10 per centto 11 per cent
£200,000 to £500,000from 10 per cent plus 8 per centto 11 per cent plus 9 per cent
£500,000 to £750,000from 10 per cent plus 6 per centto 11 per cent plus 7 per cent
£750,000 to £1mfrom 10 per cent plus 4 per centto 11 per cent plus 5 per cent
£1m to £2mfrom 10 per cent plus 3 per centto 11 per cent plus 4 per cent
£2m plusfrom 10 per cent plus 1.5 per centto 11 per cent plus 2 per cent

For example:

  • Total estimated cost of works £450,000

  • First £200,000 charged at 11 per cent = £22,000

  • Balance £450,000 less £200,000 charged at 9 per cent = £22,500

  • Total cost of fee £44,500