Guide to S278 Agreements & RSA 3 Audits

By Lance Gudger, Director at O’Brien Contractors Limited 

With over 40 years of experience in civil engineering and the delivery of S278 works, I’ve observed a notable disconnect in our industry regarding S278 agreements and their inclusion within the Main Contractor’s scope of work. This is particularly concerning since the Main Contractor is often not a direct party to these agreements and typically has minimal influence over their final wording. 

While contract terms often require the Contractor to account for “Third Party agreements” (such as the S278 agreement), tender documents rarely provide a draft or executed S278 agreement.  

Consequently, to mitigate risk, Contractors frequently stipulate in the final contract that they will not be liable for any requirements within these agreements if they are not provided by the “Base Date.” This approach generally places the risk of unforeseen elements back with the Client. 

To navigate this complexity, Clients and Main Contractors should be aware of the following key considerations regarding the wording and execution of S278 agreements, while recognising that different Local Authorities may have varying approaches: 

  1. Timing of Contract Execution: Local Authorities typically will not execute the S278 agreement until all planning conditions are resolved and technical approval is granted. 
  2. Impact on Road Space and Traffic Management: The S278 agreement usually needs to be executed before the Main Contractor can secure road space or commence negotiations on traffic management proposals. Acquiring road space can take up to three months.
  3. Key Clauses to Avoid in S278 Agreements: Clients should aim to resist the inclusion of the following clauses: 
    • Practical Completion and RSA 3 Audits: Avoid clauses stipulating that Practical Completion cannot be achieved until all issues related to the RSA 3 Audit are resolved. Such clauses could cause significant delays, especially for complex on-line infrastructure projects. Ideally, the RSA 3 Audit should begin after Practical Completion or once the road network is completed and open and conducted during the defect rectification period. 
    • Third-Party Damage Responsibility: Avoid clauses that make the Client responsible for third-party damages during the defect rectification period, such as those from road traffic accidents or graffiti, as these costs can be substantial. 
    • Winter Maintenance Liability: Ensure that the responsibility for winter maintenance is not assigned to the Contractor.
  4. RSA 3 Audit Process and Timeline: The RSA 3 Audit process can be lengthy, particularly when involving National Highways. It is essential to incorporate sufficient time and milestones into the project schedule to mitigate potential delays. Here is a recommended guide to streamline the process: 
    • Ensure that the infrastructure designer or consultant includes the RSA 3 (and 4) Audit within their scope of work and fees. 
    • Engage with the infrastructure designer, adopting authority, and proposed auditor as early as possible, ideally before completion, to draft a brief in accordance with GG119 in advance of the on-site audit. 
    • Employ an approved auditor to conduct an on-site audit, involving all necessary third parties. This audit should ideally occur immediately upon Practical Completion or with the Local Authority, once the road network is completed and open. 
    • Submit the audit findings to the adopting authority.
    • Review and agree on the final RSA 3 report, and address any issues raised either through design responses. 
    • Apply for road space if the final RSA 3 report requires additional work on the existing highway. 

Key Conclusions 

The RSA 3 Audit process can take several months, so it is crucial to prepare thoroughly and engage stakeholders early to avoid delays. Do your homework well in advance! 

By understanding these nuances, Clients and Main Contractors can better navigate the complexities of S278 agreements and RSA 3 audits, ultimately ensuring smoother project delivery and reduced risk exposure. 

Compactor machine control as O’Brien Contractors increase capabilities

compact-control-earthworks-remodelling-civil-engineering

Since its formation in 1958 by Tom O’Brien, the father of current directors Peter and Mick, specialist civil engineering and groundworks company O’Brien Contractors, based in Leamington Spa has been at the forefront of embracing new technology.

For Peter and Mick O’Brien, a focus on developing the use of Trimble machine control systems since the late 1990s, has seen the business grow its capabilities across its mixed fleet of excavators and dozers.

Having recently trialled the latest machine control technology on a compactor with Trimble solutions provider SITECH UK and Ireland, Mick O’Brien has a clear focus on how O’Brien Contractors will continue to take advantage of the technology to maximise productivity, as he explains: “From the very early stages of machine control, we recognised the commercial advantages it could offer us as a business, investing time with Trimble to develop the early solutions.

“It has been this long term journey, now continuing with Trimble dealer, SITECH which has seen us build our fleet to incorporate six dozers, twelve excavators and more recently trial the latest in compactor technology.

“For me, most people looking at machine control tend to focus onsite, whereas through our experience we know the real value lies in preparation in the office, prior to starting a job. This is why a few years ago we employed a dedicated machine control specialist. From tender stage, he liaises with our estimating team to work out volumes and look at the overall project, to see where value-engineering opportunities exist, carrying this work through when the project starts.

Even though this is a lot of investment in time before you are even awarded a job, it ultimately contributes towards a greater understanding of the project which leads to improved planning. With clients also wanting us to react very quickly when we are awarded projects, our machine control expert has the capabilities to model the earthworks required and feed this information directly into the machines, even when they are on route to site.

“So instead of engineers being dispatched to do the setting out, the machines can be operating within minutes of arriving at the job.  Even if the earthworks models change as the project moves forward, we can send the updated drawings and technical data straight to the machine.

“Of course the key to making this work is the interaction between operator and machine and this is why our expert is also tasked with training and supporting our drivers, with help from SITECH. Interestingly, you may think that machine control would be harder to introduce to older operators, but this is just not the case, as our most experienced people are in their 60’s and have found it very simple to make the transition.

“Having recently worked with SITECH to trial a compactor with machine control, I can definitely see how we can continue to expand our machine control fleet and capabilities. But for me the next step is all about utilising two-way communications, by receiving and processing data from individual machines activities.

“For our business this will be extremely important, as our clients expect us to report on site progress and this can be done in the future without leaving the office. For example, in the last 12 months we have kitted out eight excavators with machine control and can now receive data from the machines activity.

By knowing just how much of the workload each machine has achieved and the time taken, we can plan activity much better, keeping the job on track. Equally because of the partnership we have with SITECH, for certain jobs, we may choose to hire in equipment for the duration. The benefit of this approach is that we can still integrate these machines with our head office, by hiring equipment from SITECH and fitting it to the hired machine.

“I definitely think we will now see much more demand for information on earthworks from main contractors, especially as more people are challenged to meet carbon targets. In my opinion, even when you compare older machines with newer fuel efficient models, if you get machine control right and therefore the job right, it will have a much bigger impact on fuel efficiency than simply operating a new machine.”

O’Brien Contractors take the lion’s share at Goodman’s Browns Lane scheme

Civil engineering and groundworks contractor provides earthworks and groundworks services at John Sisk and Son’s Lyons Park scheme in Coventry, West Midlands

Leading groundworks and civil engineering contractor, O’Brien, has been appointed to work on Goodman’s regeneration of Browns Lane in Coventry.

In the latest phase of the masterplan for the regeneration of the former Jaguar Land Rover site, the Lyons Park development will deliver 214,000 sq ft of modern industrial space to the local area.

Appointed by principal contractor, John Sisk, the project will see O’Brien deliver a host of earthworks and groundworks, including: 36,000m2 site cut and fill to form a reduced level excavation for the building foot prints, pad foundations, new storm and foul drainage system and service yards – incorporating the petrol interceptors and an attenuation tank.

Stuart Chamberlain, Director, O’Brien Contractors sees the contract as further evidence of the firms diversification strategy paying dividends: “Our ongoing investment in cutting edge surveying equipment and state-of-the-art excavators and bulldozers; equipped with GPS control systems, enables us to continually improve the quality of our work and the speed of installation.”

“Our technical expertise is essential in carrying out the works and assisting in creating cut and fill balance on complex and time restricted earthworks schemes. It enables our expert operators to deliver the design to the exact client specifications and ensures we provide the highest quality and level of service possible.”

The £1.65m contract will see O’Brien Contractors on-site for 20 weeks, with the overall scheme due for completion this summer.