After receipt of Building Regulation approval, the developer should receive a notice under Section 220 of the Highways Act 1980. The assessment is made by the Highway Authority and will either be in the form of charges for individual plots, or a block assessment covering the whole development. An S220 bond therefore requires the Developer to source a surety bond which covers the estimated cost to construct a highway on a development.

An S220 bond reduces the liability on future purchasers if the road is not constructed to the agreed standards or is unfinished for any reason.

This bond is only cancelled when the Local Authority is satisfied a new highway has been constructed to acceptable standards, or a Section 38 Agreement is entered into – in which case the bond is often transferred as the associated.