Section 106 Agreement Examples: What Planning Officers Need to Know

Most S106 guidance explains what a Section 106 agreement is. This guide shows what they actually look like in practice — the obligation types you'll encounter, how trigger points work, and the specific terms that create monitoring headaches years after the agreement is signed.

If you're a planning obligations officer setting up monitoring for new agreements, these examples show what to record and what to watch for.

This covers England only. This is general guidance, not legal advice. Refer to the specific terms of each agreement.

What an S106 Agreement Typically Contains

A Section 106 agreement is a deed executed between the developer, the landowner, and the local planning authority. The structure varies by solicitor, but most agreements follow a similar pattern:

1. Recitals — the planning application reference, site description, and reason for the obligation
2. Definitions — key terms used throughout (Commencement, Occupation, Index-Linked)
3. Planning obligations — the substantive commitments, listed as individual obligations
4. Schedules — detailed terms for each obligation type (financial contributions, affordable housing, highways works)
5. Plans — site plans showing the land to which the agreement relates

The obligations section is what you'll spend most of your monitoring time on. Each obligation needs to be extracted and tracked individually.

Example 1: Financial Contribution — Education

Typical wording:

"The Owner shall pay to the Council the Education Contribution of £287,500 (index-linked to the BCIS All-in Tender Price Index from the Base Date) prior to Occupation of the 50th Dwelling."

What to record for monitoring:

Field	Value
Obligation type	Financial contribution
Purpose	Education
Base amount	£287,500
Indexation	BCIS All-in Tender Price Index
Base date	Usually the agreement date or a specified quarter
Trigger	Prior to occupation of the 50th dwelling
Spend-by period	Typically stated elsewhere — check the clawback clause

Monitoring pitfalls:

• Indexation is routinely miscalculated. The base amount is not the amount you invoice. You need to apply the index from the base date to the invoice date. On a £287,500 contribution, a 15% index movement adds £43,125 — real money left on the table if you invoice the base figure.
• "Prior to occupation" is ambiguous without a notification mechanism. How do you know when the 50th dwelling is occupied? Check whether the agreement requires the developer to notify the council, or whether you need to monitor building control completion certificates.
• The spend-by clock starts at receipt, not at the trigger date. If the developer pays six months after the trigger, your deadline calculations need to reflect the payment date.

Example 2: Affordable Housing Delivery

Typical wording:

"The Owner shall not Occupy or permit Occupation of more than 50% of the Market Dwellings until the Affordable Dwellings have been constructed and transferred to the Registered Provider in accordance with Schedule 3."

What to record for monitoring:

Field	Value
Obligation type	In-kind delivery
Purpose	Affordable housing
Number of units	Per Schedule 3 (e.g. 30% of total, broken into tenure types)
Tenure mix	Social rent / affordable rent / shared ownership / First Homes
Trigger	Before occupation of 50% of market dwellings
Registered provider	Named in agreement or to be approved by council
Compliance evidence	Transfer deed + completion certificate

Monitoring pitfalls:

• Tenure mix substitution. Developers sometimes deliver all units as shared ownership when the agreement specifies a mix. Check the schedule carefully and verify the tenure of delivered units with the registered provider.
• "Constructed and transferred" is two steps. Units can be built but not transferred. The obligation isn't discharged until both conditions are met. If the registered provider pulls out, the developer still owes the obligation.
• Phased schemes complicate triggers. On a 500-unit scheme delivered in 3 phases, "50% of market dwellings" might mean 50% of the total or 50% of a phase. The wording matters — read it literally.

Example 3: Highways Works

Typical wording:

"The Owner shall prior to Commencement enter into a Section 278 Agreement with the Highway Authority for the Highways Works as shown on Plan 3 and shall complete the Highways Works prior to Occupation of the first Dwelling."

What to record for monitoring:

Field	Value
Obligation type	In-kind delivery
Purpose	Highways / transport
Works description	As shown on Plan 3 (junction widening, pedestrian crossing, etc.)
S278 trigger	Prior to commencement
Completion trigger	Prior to first occupation
Adoption	Subject to highways authority technical approval + maintenance period

Monitoring pitfalls:

• Two separate triggers. The S278 agreement must be signed before commencement. The works must be completed before first occupation. If development commences without the S278, you have a breach — but enforcement action takes months.
• Highways works often slip. Developers will occupy dwellings before highways works are complete. Your monitoring needs to flag when the completion trigger has passed but works are still outstanding.
• Adoption takes years. Highways authorities require a defects liability period (typically 12 months) before adopting completed works. Until adoption, the developer remains responsible. This is usually a highways authority issue, but your S106 register should record the completion date and adoption status.

Example 4: Open Space Commuted Sum

Typical wording:

"The Owner shall pay to the Council the Open Space Maintenance Sum of £150,000 upon Transfer of the Open Space Land to the Council."

What to record for monitoring:

Field	Value
Obligation type	Financial contribution (commuted maintenance)
Purpose	Open space maintenance
Amount	£150,000 (check if index-linked)
Trigger	Upon transfer of open space land
Land transfer	Separate obligation — open space land must be laid out and transferred

Monitoring pitfalls:

• Land transfer and maintenance sum are linked but separate. You can't invoice the maintenance sum until the land is transferred. But the developer might delay the transfer if the open space isn't laid out to specification. Track both obligations together.
• Maintenance periods are long. Commuted maintenance sums cover 10–25 years of upkeep. The council's parks team needs to confirm they can maintain the space before accepting the transfer.

What to Check Before Signing Off on Monitoring Setup

When a new S106 agreement arrives, use this checklist before adding it to your register:

• Every obligation extracted as a separate tracked item
• Trigger type and milestone identified for each obligation
• Financial amounts recorded with indexation basis and base date
• Spend-by period identified (check the clawback clause — it's often in a general provisions schedule, not alongside each obligation)
• Developer notification requirements noted (must they notify you of triggers, or must you monitor independently?)
• Service area contacts assigned for each obligation type (education, highways, housing, parks)
• Agreement added to building control watch list for commencement and occupation monitoring

For a customised version of this checklist tailored to your agreement's obligation types, try the S106 Agreement Checklist Generator.

For the broader monitoring process, see The Complete Guide to S106 Monitoring for Planning Officers.

Sources

• Town and Country Planning Act 1990, Section 106
• GOV.UK — Planning Obligations Guidance
• PAS — Infrastructure Funding Statements Guidance