A Section 38 agreement manager handles the process by which newly built estate roads are adopted as public highway maintainable at public expense under Section 38 of the Highways Act 1980. New residential developments are almost always required to provide adoptable highway infrastructure - roads, footways, drainage, lighting - that will be taken over by the highway authority once complete. The s38 specialist designs the highway to adoptable standards, agrees the design with the authority, manages the legal agreement, oversees construction inspections, calculates the required bond and progresses through to formal adoption.
What they do
- Design estate roads, footways and drainage to local adoptable standards
- Prepare and submit highway design drawings for highway authority approval
- Progress the legal s38 agreement to execution
- Calculate the bond value (typically 110% of estimated works cost)
- Manage highway authority stage inspections during construction
- Compile road construction record drawings (as-built surveys)
- Manage the maintenance period and defects liability process
- Progress to formal highway adoption certificate
When you need one
An s38 agreement is required on any development where new roads are to be built for adoption as public highway - most commonly on residential estate developments.
Typical costs (UK, 2025)
| Job type | Typical cost |
|---|---|
| Highway design - small estate (under 20 plots) | £3,000 - £8,000 |
| Highway design and s38 management - medium estate | £8,000 - £25,000 |
| Highway design and s38 management - large estate | £25,000 - £80,000+ |
| Highway authority check fees (paid to LHA) | £2,000 - £15,000+ |
| S38 bond (typically 110% of road works value) | Varies with works value |
| Hourly rate (highway engineer) | £60 - £110 / hr |
Highway design fees on estate developments are often included within the wider civil engineering design scope. The bond cost depends on the financial institution used and the estimated value of the highway works.
Qualifications to look for
Chartered civil engineers with highway design experience are the most common practitioners managing s38 agreements. The Institution of Civil Engineers is the primary professional body for civil and highway engineers. Check membership at ice.org.uk.
CIHT membership confirms specialist competence in highway and transportation engineering, including estate road design and adoption. Check membership at ciht.org.uk.
How to find a reputable s38 agreement manager
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What is a Section 38 agreement?
A Section 38 agreement is a legal agreement made under Section 38 of the Highways Act 1980 between a developer and the local highway authority. It sets out the terms by which newly built estate roads, footways and drainage will be adopted by the highway authority as public highway maintainable at public expense. The developer must build the roads to the highway authority's adoptable standards and maintain a bond (financial guarantee) during the construction period. Once adopted, the highway authority takes on responsibility for maintenance in perpetuity.
What is an adoptable highway?
An adoptable highway is a road, footway or cycle track built to standards that the local highway authority is willing to take on for future maintenance. Adoptable standards are set by the highway authority based on Manual for Streets (MfS) and Design Manual for Roads and Bridges (DMRB) principles. They cover pavement construction depths and materials, drainage design, kerbing, visibility splays, turning heads, lighting and signing. A road that does not meet adoptable standards will be rejected by the highway authority.
How long does the s38 process take?
The s38 process typically takes 2-5 years from initial design approval to final adoption of the road. The highway authority carries out inspections at key construction stages (subbase, binder course, surface course, final inspection). After construction is complete the highway authority requires a maintenance period (typically 12 months) during which defects must be made good before formal adoption is issued. During this period the developer's bond remains in place.