Section 74 Street Works Act: What Contractors Need to Know

If you’re a contractor working on public highways, understanding Section 74 of the New Roads and Street Works Act (NRSWA) is essential. This legislation allows highway authorities to apply penalties when street works overrun their agreed duration. In short: if your roadworks take too long, you could be fined.

Here’s a practical breakdown of what Section 74 means, how it works, and how to avoid unnecessary costs.

What Is Section 74 of the Street Works Act?

I am a contractor and have been warned about receiving a Section 74 - what is it?

Section 74 of the NRSWA allows highway authorities to impose financial penalties on utility companies and contractors who carry out street works that exceed their agreed schedule without good reason. The aim is to reduce delays and ensure roads are reopened as soon as possible.

In simple terms: if you're digging up the road and you take too long, you pay.

Why Do Overrun Fines Exist Under Section 74?

Before Section 74 was introduced, there were few incentives for utility companies to complete work quickly. Roads could be blocked for weeks, frustrating drivers, harming local businesses, and increasing traffic congestion.

By introducing daily fines for overruns, Section 74 encourages better planning and more efficient execution of works.

How Are Street Works Durations Agreed?

Here’s a step-by-step breakdown of how Section 74 operates:

1. Advance Notification – Contractors must notify the local highway authority in advance of when and where street works will occur, and how long they’re expected to take.
2. Agreed Duration – The authority agrees to a time window for the work.
3. Monitoring – If the work overruns, the authority assesses whether there’s a valid reason (e.g., poor weather, unforeseen technical issues).
4. Charging for Overruns – If the delay is unjustified, the authority can issue daily fines, with rates varying based on the road type and delay length.

How Much Could a Section 74 Fine Cost?

Charges vary between authorities and depend on:

• The category and traffic volume of the road
• The length of the overrun

In general:

• Lower charges apply on quieter roads or for short delays
• Higher penalties are issued on major routes or for longer disruptions

Are There Exemptions from Section 74 Fines?

Not all overruns automatically result in penalties. You may be exempt if delays are caused by:

• Emergency utility issues
• Severe weather conditions
• Public safety concerns

Additionally, Section 74 only applies when formal notice and timing agreements are in place. Emergency works, for example, may follow different rules under NRSWA.

What Are the Benefits of Section 74?

Section 74 represents a key tool in balancing infrastructure work with public convenience. It may not eliminate delays altogether, but it holds contractors and utility providers accountable for efficient roadwork execution.

That’s a win for:

• Local authorities
• Drivers and residents
• Contractors who plan and perform responsibly

Final Thoughts

Understanding your obligations under Section 74 can help you avoid costly penalties and keep your projects on track. With proper planning, communication, and execution, you can meet your deadlines, and keep the local roads moving.

Need Help With NRSWA Compliance?

Want to avoid Section 74 fines? Contact our team for training options and ensure you and your team are up to date with street works compliance.

If you are interested in Streetworks courses, find out more here.

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