The Street Works (Sharing of Costs of Works) (Wales) Regulations 2005

Explanatory Note

(This note is not part of the Regulations)

These Regulations replace and revoke (as respects Wales) the Street Works (Sharing of Costs of Works) Regulations 1992 (S.I. 1992/1690) (“the 1992 Regulations”), which make provision for the sharing of costs between the highway, bridge or transport authority (“the authority”) and the undertaker where the undertaker’s apparatus in a street is affected by major highway, bridge or transport works (“major works”) and measures (“diversionary works”) are required to protect that apparatus. The principal change effected by the Regulations is that the undertaker’s share of the costs of diversionary works required in the case of certain major transport works is now 7.5 per cent rather than the 18 per cent provided for by the 1992 Regulations. There are also some minor and drafting changes.

Where diversionary works are executed by an undertaker because of major works initiated by an authority, the authority must pay 82 per cent of the allowable costs (as defined in regulation 2(2)) of those diversionary works, provided that 75 per cent of those costs are paid by the authority in the manner provided in regulation 8. Where the major works are major transport works (other than works which are major bridge works or certain major highway works), the authority pays 92.5 per cent of the costs: regulation 3.

Where diversionary works are executed by an authority because of that authority’s major works, the undertaker must pay 18 per cent or 7.5 per cent (as the case may be) of the allowable costs to the authority: regulation 4.

Where the undertaker requests the authority to move its apparatus solely because of a change in the type of highway construction, it is normally required to pay the whole of the allowable costs: regulation 4(2). In the case of works initiated by a person other than an authority in its capacity as such or an undertaker, the foregoing rules apply to diversionary works depending on whether they are executed by the authority or the undertaker, but allowance must be made in full for any contribution towards the costs of those diversionary works recoverable from the person on whose behalf the works were initiated: regulation 5.

An undertaker is not liable for allowable costs in relation to providing space in or strengthening of a bridge to accommodate its apparatus (regulation 6(1)) and cannot recover its costs where it has placed its apparatus in the street after the authority has given it statutory notice of its intention to carry out major works: regulation 6(3).

Provision is made requiring the undertaker to give credit for any gain received by it from betterment of its apparatus or deferment of the need to renew its apparatus resulting from protective measures: regulation 7. There is provision as to the timing and manner of payment (regulation 8) and for exclusions (regulation 9). Regulation 10 revokes the 1992 Regulations as respects Wales, provides that these Regulations apply where notice of intention to execute major works is given on or after the date on which they come into force and that the 1992 Regulations continue to apply where such notice is given before that date.

The Code of Practice entitled “Measures Necessary where Apparatus is affected by Major Works (Diversionary Works)” (1992) (ISBN 0-11-551149-0) is published by The Stationery Office and may be obtained from their bookshops or by mail, fax or telephone from PO Box 29, Norwich NR3 1GN (Tel. [phone]/fax [phone]) or by e-mail from [e-mail].