If you’ve ever wondered how long it takes to get a surety bond for road and sewers, whether anything can slow down the process, or even why surety bonds are so important for road and sewer bonds, all will be explained in this article.
| At RS Bonds, we work closely with contractors and developers through every stage of the application process to ensure their application goes smoothly, and that they obtain their bond as quickly as possible. |
Factors That Can Influence How Long It Takes To Get A Surety Bond
There are major factors that can slow down the process of obtaining a surety bond for roads and sewers.
- Draft agreement/bond wording being finalised and the agreement of the bond reduction points (if applicable) with the surety provider
- Financial strength – depending on the financial strength of the applicant company, some underwriters may require additional supporting information in order to get comfortable signing the bond
- Market conditions – hardened economic market conditions and increased developer insolvencies can lengthen surety market SLA’s in the industry owing to heightened claims and more due diligence checks.
As the only broker in the UK that specialise solely in the procurement of road and sewer bonds and with our exclusive underwriting partnerships we can procure a bond efficiently and in the quickest way possible.
What Is The Timeline For Obtaining A Surety Bond?
The timeline for applying and receiving surety bonds for roads and sewers can vary drastically. The overall process can be influenced by factors such as:
- The responsiveness of local authorities
- The availability of the bond
- The bond wording
- The underwriter’s requirements
RS Bonds aim to provide quotes for surety bonds within five to seven days, and we work with surety providers to ensure that you receive the bonds in a timely manner.
Can The Process Be Shortened?
There are a number of ways that you can shorten the process of obtaining surety bonds for your road and sewer projects, and the good news is, they are all things you can do yourself.
One of the main ways you can shorten the process of applying for surety bonds is to make sure that you provide as much information as possible on your application form, and ensure that it is fully completed. This can shorten the process as it reduces the need for the surety providers to request for additional details and information.
The other main thing that you can do to shorten the process of obtaining a road and sewer bond is to work with a specialised insurance provider like RS Bonds, who have exclusive underwriting relationships and technical expertise in road and sewer bonds. This allows for faster quote turnaround and smoother processing of the bond application.
What Is A Surety Bond?
A surety bond can provide a financial protection that ensures a developer or contractor completes their work to an adaptable and agreeable standard. This bond can be called upon and the monies used to appoint a new developer or contractor to complete the works to an adoptable standard.
It is fairly common for contractors and companies to not realise that they need bonds for certain projects. This is especially true for small businesses and inexperienced developers who may not have dealt with bonds before.
We recognise that road and sewer bonds are not seen as an immediate priority for developers. However, failing to obtain a road or sewer bond can lead to significant delays on site and further legal costs/fines.
Why Are Surety Bonds Needed For Roads & Sewers?
Surety bonds are important for roads and sewers because they can provide financial protection and ensure that the contractor or developer completes the project to the required standards. If the contractor fails to fulfil their obligations, the bond can be called in to rectify the work, or hire a new contractor to complete it.
This protects the interests of the local authority and ensures the roads and sewers are built to the necessary standards.
Additionally, surety bonds provide confidence to potential buyers or residents of the development, as it provides further comfort that the developer will complete the works to an adoptable standard.
Once the local authority adopts the road and sewer, the road or sewer is maintained in perpetuity by the local authority at the public’s expense.
It is important for developers and contractors to understand these legal obligations and ensure that they comply with the requirements set by the local authority. Failure to meet these obligations can result in financial penalties or legal consequences.
Apply For Road & Sewer Bonds Through RS Bonds
RS Bonds are the only company in the UK that specialise solely and exclusively in the procurement of road and sewer bonds. Our mission is to procure the best value road and sewer bonds for housebuilders as efficiently as possible.
Fill in our quote request form today to find out more about how long your road and sewer bond will take to obtain.
