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Development control fees - section 38 and section 278

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


Section 38

There's an increase from 7.5 % to 8.5 % 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 % 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 %

  • 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

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

For example:

  • Total estimated cost of works £450,000

  • First £200,000 charged at 11 % = £22,000

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

  • Total cost of fee £44,500