Examines the recent European Court of Justice decision in "Ordine degli Architetti delle Province di Milano et Lodi and others v Commune di Milano and others" (C-399/98) which may have implications for important UK planning agreements. The case concerned the grant of planning permission for a large redevelopment and the subsequent payment of a fee in accordance with Italian planning law. The key issue was whether the contract agreed between the City of Milan and the developers was a public contract within the meaning of the Public Works Directive and it was held that an agreement to build infrastructure works instead of paying a financial sum for the grant of planning permission was a 'public works contract'. Although there is no statutory obligation to pay impact fees in Britain, the article explains in some detail how the Italian case can be applied to planning obligations under the Town and Country Planning Act 1990 s106, known as planning agreements or planning gain.