That the above Fee structure is introduced for all Highways agreements for Supervision from 1^st September 2020.

To ensure that the authority fully recovers its costs when carrying out supervision works in relation to Highway Agreements with Private Sector Developers.

Various options have been considered and discounted; including more use of fixed fees, an increased single value percentage and bespoke fee proposals for individual schemes. Consideration of ensuring that fees are fair and appropriate to each location and the timescales involved with dealing with agreements have demonstrated that the recommended approach is the most appropriate.

This decision will be implemented immediately.

Historically Torbay Council have charged a nominal flat fee of 6% for supervision services to developers and contractors seeking to build infrastructure that they wish to be adopted and maintained at public expense in relation to construct new sections of highway under a Section 38 agreement and also those wishing to alter a public highway under a Section 278 agreement.

Samples of schemes have been analysed to ascertain whether the authority is recovering its costs. It has been noted that the current fee levels are appropriate for the larger value agreements, however for the smaller values the authority does not appear to be recovering its costs sufficiently and a change from the current fee arrangements are recommended.

In addition it has been noted that agreements around higher profile developments, where improvements to public realm and higher quality materials are required, will incur additional supervision from highways officers and this needs to be reflected in the supervision fees charged.

Therefore we are proposing the following fee structure for highway agreement works. Note that the stated percentages relate to the authority’s estimated construction costs of the schemes in question:

·         Section 38 fees up to £25,000 to be £1,500 fixed fee

·         Section 38 fees £25,000 to £50,000 to be 10%

·         Section 38 fees £50,000 to £150,000 to be 8%

·         Section 38 fees over £150,000 to be 6%

·         Section 278 fees up to £25,000 to be £1,500 fixed fee

·         Section 278 fees £25,000 to £50,000 to be 10%

·         Section 278 fees £50,000 to £150,000 to be 8%

·         Section 278 Works over £150,000 to be 6%

·         Any Public Realm works and Town Centre improvements will carry an additional 1% on the above percentages, due to the increased officer time dealing with the design and consultations.

None.