Developers are keen to suppress contribution levels of financial contribution under a S.106; it is therefore essential that you make a rigorous assessment of the development appraisal at the outset. Identify the elements which cause concern, and ensure through effective drafting of the obligations, payment triggers and the use of claw back mechanisms that they are managed to your advantage, consider:
• Index linking of contributions
• Building flexibility into the allocation and use of contributions
• Ensuring financial contributions stay with the Local Authority and are not returned to the
Developer
• Inclusion of claw back clauses to ensure that you are protected from Developers who
exaggerate costs and suppress anticipated income in their development appraisal
Effective drafting of the Developer’s obligations via a section 106 will ensure that your Local Authority achieves its expectations from the agreement.