(1)After section 137 of the 1991 Act there is inserted—
(1)Where a road works authority have given a resurfacing notice to an undertaker—
(a)the authority shall pay to the undertaker a proportion, calculated in the prescribed manner, of the costs reasonably incurred by the undertaker in executing the works specified in the notice,
(b)an undertaker to whom subsection (2) applies shall pay to the undertaker referred to in paragraph (a) a proportion, calculated in the prescribed manner, of those costs.
(2)This subsection applies to an undertaker if—
(a)the undertaker has, before the completion of the works specified in the notice, executed road works which involved the breaking up of any part of a road, and
(b)the works specified in the notice include the resurfacing of that part of the road.
(3)The Scottish Ministers may by regulations prescribe exceptions to the duty imposed by subsection (1)(b).
(4)The payments referred to in subsection (1) shall be made in such instalments and manner, and within such period, as may be prescribed.
(5)The Scottish Ministers may by regulations make provision requiring disputes of a prescribed description (including disputes as to whether subsection (2) applies to an undertaker) to be determined in such manner and by such persons as may be prescribed.
(6)For the purposes of this section, any costs incurred by an undertaker (including any costs of a road works authority which are borne by the undertaker) in consequence of a failure by the undertaker to comply with any duty under this Part shall be treated as having been incurred unreasonably.
(7)The first regulations for the purposes of this section shall not be made unless a draft of them has been laid before and approved by a resolution of the Scottish Parliament; subsequent regulations shall be subject to annulment in pursuance of a resolution of the Scottish Parliament.”.
(2)In section 155 of the 1991 Act, in subsection (3), after “road)” there is inserted “or 137A (contributions to costs of resurfacing by undertakers)”.