Advance Payments Code

By Paul Weeks

The Advance Payments Code provides a protection mechanism for local highway authorities to ensure that they are not unexpectedly required to meet the costs of new roads that were not intended to be maintained by the public purse.

A local highway authority can serve a notice seeking the payment of, or security for, the estimated cost of construction for the private streets in a development (an ‘APC Notice’). It is a simple idea, but the applicable legislation (ss219–225 Highway Act 1980) is surprisingly complicated and can cause problems.

The implications of the Advance Payments Code should therefore be borne in mind when considering the construction timetable. The impact of the code is usually relatively limited due to the common use of section 38 agreements, which negate the need for an APC Notice to be served…

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