An Advance Payment Code (APC) bond ensures that the council has the funds available should the council have to step in to construct or make up a street that forms part of new development.
Detailed guidance on highway adoption including APCs is available within the Department for Transport’s Advice Note “Highways Adoption The Adoption of Roads into the Public Highway (1980 Highways Act)” (the Act). The developer should familiarise themselves with the provisions of sections 219 to 225 of Part XI of the Act and ensure any landowning parties, including all future landowners, are fully aware of their responsibilities.
The APC assessment notice
The council’s APC process applies both to roads that are to remain private and those that are to be adopted.
The APC process
The District Council must inform the Highway Authority within one week of submission that building regulation plans have been passed. At which point, unless proposals are exempted under the Act, notice will be served within six weeks on the person who deposited the plans, and the developer if known, detailing the assessed costs associated with the roads. The landowner should be informed of the notice and reminded of their legal responsibilities. It should be noted that the APC is not linked to planning approvals.
On receipt of the building regulation plans the council will calculate an estimated APC sum and serve notice. Calculations are based on the full value of works to construct a road that serves the buildings within the development to adoptable standard and includes the council’s reasonable administration costs.
Certain buildings are exempted from payment under the Act or may or may not require the council to issue an exemption notice. Please refer to the relevant legislation and advice note.
In the council apply the following standards.
- Five or fewer new residential buildings served off a private drive are exempt.
- An APC will apply to industrial premises. A case-by-case decision where more than three-quarters of the frontage consists of, or is likely to consist of, industrial premises and the private street works code is not likely to apply.
Non-payment of APCs
Non-payment of APCs presents significant financial risk to the authority. If work has started on a building before the appropriate sum is secured, either the landowner or the person undertaking the construction work may be prosecuted. If convicted, a fine is liable to be paid under the Act for each separate breach. Routine site inspections are undertaken to ensure the APC process is being observed.
Commencement of construction
Construction of a building can only commence when:
- the APC has been secured, the whole assessment or the amount assessed for the plot intended to be built has been paid, or
- a Section 38 highway adoption agreement has been entered into.
Construction can begin on a road within the development at any time. However, the council may not exempt the APC notice and/or return the APC money or bond if the council’s APC process is not followed.
Please note: the APC process does not apply to existing roads or the creation of an access within the highway. An appropriated permit or agreement must be in place with the council prior to commencement of works to existing public highway.
The APC assessment amount can be paid by cheque or cash, or a bond will be accepted in some circumstances.
Refunding advance payment code money and sureties
Roads that are to remain private:
The following process will lead to the exemption of the APC notice and return of the deposited money or surety.
- Layout and construction drawings are submitted to the council for technical approval.
- The inspection and administration fees are paid.
- A construction specification is agreed with the council for a private road that is fit for its purpose.
- The council is informed of when construction is due to start on the roads.
- The developer liaises with the council Development inspector, notifying them at each significant phase of construction to allow each phase to be inspected.
Information about technical approval of roads that will remain private.
If construction is carried out without inspection, the inspector may ask for testing, at the developer’s expense, to ensure the construction is of a suitable standard. If the correct processes are not followed, the council will not serve an exemption notice and will not return any money or surety.
When the road has been constructed to a satisfactory standard, and certified by the inspector, the council will serve an exemption notice and the money will be returned in full, with interest added if applicable, or the security can be cancelled. Part refund of the money cannot be offered. Please note that completing this process does not mean that the road will be of an adoptable standard. It is the developer’s responsibility to ensure that residents understand the private status of the road.
Roads that are to be adopted:
When a Section 38 agreement is entered into with the council the APC assessment will be cancelled for the plots directly served by the proposed public highway or plots on private drives serving 5 or less; the council will refund the money, with interest added if appropriate, cancel the bond or return the security. Note: private drives that serve 6 or more plots will not have the APC assessment cancelled; see above for how to exempt the APC assessment on roads that are to remain private.