The Future of Section 74 Peter Goode Nottingham City Council
Dec 13, 2015
Section 74
• Why Section 74?
• 2001 Scheme
• Interpretation and Challenge
• Review of the Scheme
• New Emphasis
• Revised Scheme
Section 74
• Providing incentives to:– Complete works without delay– Minimise disruption– Maximise productivity– Meet public expectation
ICE Report
• “…. road works by utility companies are the principle cause for AVOIDABLE delay.”
• Total cost per day of delayed traffic flow is £3160 per excavation – based on– 500 vehicles each way per day– 15 minutes delay– Average earnings £20,000 = £0.20 / min
The cost of delay
• Peak period flow assumed 1veh / sec
• Peak period assumed for 1 hour
• Peak period vehicles = 3600
• Cost of delay = £0.20 x 3600 = £720 / min
• If typical delay is half hour, cost = £21,600
Section 74 Schemes
• Allow charges for occupation when unreasonably prolonged
• Promote proactive management of works
• Encourage planning, estimating and control of works to avoid charges
• Allow updating and revised plans to complete within time and avoid charges
2001 Scheme
• Emphasis on longer duration works – 5 day prescribed period
• Ministers decided 3 day prescribed period
• Weekends available at no charge
• Reinstatement category is proxy to traffic flow
• Remedial works have independent duration
2001 Scheme
• Simple scheme
• 2 x 2 matrix of charges
• Charges proportional to works
• Used existing notice systems
• Avoided need for additional inspections
• Minimised cost of operation
Interpretation and Challenge
• Regulations contained error(s)
• Regulations are ‘gibberish’ written by a ‘demented computer’
• Use of notices are undermined by the right to rebut
• Remedial works included in original period
Scheme Review
• Identify successes and failures
• Identify loopholes
• Catch me if you can v Income stream
• Charge Evasion v Charge Avoidance
• Keep Notices Live v Complete Works
Review Issues
• Scheme undermined by regulation errors
• Ambiguities in noticing requirements
• Interpretation by developers and users
• Lack of early intervention
• Too much time spent collecting charges
Emphasis of New Scheme
• Ease of operation
• Synergy with permits and TMA generally
• DfT remit
• Narrowed scope
• Higher charges
• Inspection of works
Narrowed Scope
• Emphasis towards higher vehicular flows• Exempt lower category streets• Different views held – Compromise for
consultation– Occupation v Congestion– Variance from TMA– Vehicle congestion v Pedestrian disruption– Which streets included?– Which works included?
Charges (Per Day)
Reinstatement Category and Street Type
Works Type Cat 0 + 1 Cat 2 Cat 3 + 4 TS
Programmed and Major
£5000 £3000 £1000
Standard £3000 £1000 £500
Immediate £1000 £1000 £250
Minor £0
Inspection of Works
• Notice submission dates do not apply – inspections required
• 10% inspection allowance for S74 to be implemented by Inspections group– Monitor progress– Check incursion– Check site clearance
New Features
• 2 day prescribed period
• Incursive works only
• Exempt non-traffic sensitive Cat 3 and 4
• Exempt pedestrian streets
• Parallel use of FPN powers
Invoicing
• More stringent process
• Defined time periods for action by each party
• Minimises prolonged dispute
• Encourages early settlement
• Improves budget control
Summary
• New scheme to take account of– Experience– Legal judgement– Traffic Management Act
• Not all issues agreed– Consultation to influence final scheme
• Application across work by all parties