(1)Where by reason of undertakers' works (other than works for purposes of a railway undertaking or a tramway undertaking) the use of a highway is restricted or prohibited under section 12 of the [1967 c. 76.] Road Traffic Regulation Act 1967, or under any other enactment, and the traffic restricted or prohibited uses as an alternative route a highway of a lower classification, the person executing the works shall pay to the highway authority (if the latter highway is a highway maintainable at the public expense) or to the street managers (if it is not) an amount equal to any cost reasonably incurred by the authority or managers of—
(a)strengthening the latter highway, in so far as the strengthening is done with a view to, and is necessary for, the use of it by the traffic in question; or
(b)making good any damage to the latter highway occurring in consequence of the use of it by the traffic in question.
(2)The reference in subsection (1) above to works for purposes of a railway undertaking or a tramway undertaking includes a reference to works executed primarily for those purposes but for other purposes also.
(3)For the purposes of subsection (1) above the order of classification of highways, from higher to lower, is to be taken to be the following, that is to say, trunk roads, classified roads and highways that are neither trunk roads nor classified roads.
(4)If, in relation to a claim for a payment under subsection (1) above, any question arises—
(a)whether the cost in respect of which the claim is made was in fact incurred,
(b)whether such cost was incurred in such circumstances or in respect of such works, as are mentioned in subsection (1) above,
(c)as to the amount of such cost, or
(d)whether such cost was reasonably incurred,
the question is to be determined by a single arbitrator appointed, in default of agreement between the parties concerned, by the President of the Institution of Civil Engineers.
(5)In this section "railway", "street managers", "tramway" and "undertakers' works" have the same meanings respectively as in the [1950 c. 39.] Public Utilities Street Works Act 1950.