It followed an accident on the minor road between Rhonehouse and Tongland in Dumfries and Galloway in April 2010.
The collision resulted in road paver driver Robbie Murray being trapped in his vehicle to the danger of his life.
Dumfries and Galloway Council admitted the breach of the Health and Safety at Work Act.
Dumfries Sheriff Court was told the accident involved the road paver being driven by Mr Murray and a tipper lorry.
It left him with severe and lasting injuries.
The council admitted that there was a failure to make a suitable and sufficient assessment of the risk to drivers of sub-contracted vehicles.
It also admitted failing to implement a safe system of work for the movement of vehicles engaged in repairs to the carriageway.