The adoption of Section 38 allows the promoter to enter into a legal agreement with the road authority to ensure the final adoption of a new departmental road. The agreement contains a framework of clauses, including the duration of road construction, responsibility for the maintenance and repair of the road prior to adoption, payment of Landratsamt fees and fees by the developer, all land transfer arrangements and what happens if something goes wrong. An agreement with a developer under Section 38 of Highway 1980 is required when a developer wants the Council to cover and expect public costs (i.e. adoption) of roads and trails. The purpose of this document is to help developers through the process of creating a Section 38 agreement with Newcastle City Council, which explains what developers can expect from the Council and what the Council can expect from developers. Visit the site in Section 38 of the agreement to learn more. The agreement is also guaranteed by a loan or financial payment which the road authority may benefit from in certain circumstances, for example. B if the developer goes bankrupt or goes into liquidation before the roads are completed. Copy contracts can take up to 7 business days to be made available to you from the time payment is received. A Section 38 agreement requires the developer to complete certain work within the prescribed time frame. For example, the pavement must be complete to the depth of the surface material (the layer under the finished roadway), sidewalks must be completed and public lighting must be operational. Therefore, compliance with the agreement should ensure a safe and usable highway for residents before its formal adoption. A Section 38 (or S38) agreement is a section of the 1980 Highway that can be used when a developer proposes the construction of a new road for residential, industrial or general transportation, which can be proposed to the road authority for adoption as a public highway.

The Highway Authority (Council) does not have the power to insist that a developer enter into an S38 agreement.