A Section 104 agreement (under the Water Industry Act 1991) is an agreement between a developer and sewerage undertakerwhere the developer agrees to build sewers to an agreed standard, which the water company will then adopt.

There are strict regulations in place for obtaining an agreement which can be a minefield for developers.

A Section 104 adoption agreement must be entered into before construction of the sewers begins. A bond is also required which is 10% of the estimated construction cost.

Legal advice should be sought prior to entering into the Section 104 Agreement.