Section 104 Agreement Process

Section 104 Agreement Process

The Section 104 agreement leads to a drainage system that drains private areas such as roofs and entrances, as well as highway drainage. The cost of entering into this type of agreement varies depending on factors such as the size of the development and the system required. The Code for Adoptions was introduced on 1 April 2020, which means that all new applications referred to in Section 104 must comply with the design and construction guide published by Water UK in accordance with the new code. Interestingly, many lawyers will try to get a copy of these agreements. It has always been Severn Trent`s policy that S104 agreements are a confidential agreement between them and the developer and, as such, are not passed on to third parties. However, many developers provide them upon request, so we always recommend contacting them instead. A Section 104 agreement (under the Water Industry Act 1991) is an agreement between a developer and a remediation company for the introduction of sewers for development. There are strict rules for getting a deal that can be a minefield for developers. The process is often on the critical path of a project and the decisions related to it can have a huge impact on costs. In Wales, mandatory building standards provide that an agreement must be concluded in accordance with Section 104 before a development can proceed.

As this legislation is likely to be implemented in England, it is important that all stakeholders in housing projects understand the process. The new adoption code recommends that you do not start building new assets that we will be expected to take over until all parties sign the legal agreement provided for in Section 104. For major developments (usually ten or more houses), the normal method used to achieve this transfer is Section 104 of the Water Industry Act (1991), generally referred to as Section 104 Agreement (or abbreviated S104 Agreement). This is an agreement between the developer and the water company that defines the acceptance criteria. In short, the developer agrees to build the sewers to an agreed standard and wait for them for some time after construction, usually a few years. After this period, in the absence of significant problems, the ownership is transferred to the water company, which is then responsible for the sewers. When designing, commissioning and servicsing piping systems for acquisition in the Section 104 agreements, developers and their selected designers have opened up a multitude of product and material options and must take into account a number of considerations. Another way to take care of sewers is another part of the Water Management Act, S102. This is a retroactive agreement that can be used to take over existing sewers in the absence of an S104 agreement. This is done at the request of the owner and, if the water company is satisfied with the condition of the sewers, the transfer is immediate. These are sometimes judged in our research as in the negotiation phase, because the sewage disposal channel becomes public immediately after the signing of the treaty. Before the start of the construction of the sewers, an acceptance agreement must be concluded in accordance with Article 104.

A loan is also required, which represents 10% of the estimated construction costs. Since 2005, the deposit is mandatory and must represent 10% of the estimated cost of the work. What can be done to ensure that the process runs smoothly? All wastewater treatment plants must meet strict design, environmental and legislative requirements, as well as requirements set by the Environment Office. . . .


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