Who Provides Road & Sewer Bonds?
When you are looking to get a road and sewer bond, you may have a number of questions, and who will be the provider of the road and sewer bond is one of these. This article will answer this question, as well as other questions you may have about the Road & Sewer bond application process.
| RS Bonds have a 100% track record of securing bonds for our clients, regardless of the financial strength of the housebuilder or nature/status of the project. |
Who Provides Road & Sewer Bonds?
The Local Authority/Water Company is the adopting party/beneficiary and they ask for the road or sewer bond as an obligation in order for them to adopt the road.
Following which, the developer will approach a surety company, like us. We then approach our extensive panel of bond providers to obtain the best terms for our clients.
Adoption Agreements are legally binding contracts obliging the Developer to satisfy any party stipulations to achieve adoption. They usually take the form of an agreement between the Developer, the bond beneficiary, and the bondsman.
How Do I Get A Road & Sewer Bond?
A road and sewer bond is a legal requirement, when the developer wishes to transfer responsibility for a road or sewer to the local authority or water company, so they must be procured before any work starts on a project. That’s why you need to know the process of obtaining the bond.
The first thing you need to do is fill out the bond application form. RS Bonds have a basic application form and an Over-The-Phone Application Completion Service.
Typically, when you apply for a performance bond, you have to provide the bank or insurance company with the following information:
- Completed & Signed Application Form
- Most Recent Audited Financial Accounts
- Draft Bond wording
- Latest Management Accounts (if available)
- Copy of Performance Bond Wording (if available)
We collate the information, do our checks, and present this to the markets to obtain quotes from an extensive panel of bond providers.
We aim to provide a quotation within 5-10 working days. However, if you are under strict time constraints we can and will do everything possible to expedite the process.
Road & Sewer Bonds We Can Help With
We can help with the procurement of a variety of road and sewer bonds. These include:
Road / Highway Bonds
- Section 38 Agreement Bond (Highways Act 1980) – Adoption of a New Highway
- Section 278 Agreement Bond (Highways Act 1980) – Alteration to a Public Highway
- Section 184 Agreement Bond (Highways Act 1980)
- Section 220 Agreement Bond (Highways Act 1980) – Advanced Payment Code
- Section 21 Agreement Bond (Road / Scotland / Act 1984) – Adoption of a New Highway
- Section 56 Agreement Bond (Roads Scotland Act 1984)
- Section 96 Agreement Bond (Roads Scotland Act 1984)
- Article 24 Agreement Bond (The Private Streets | Northern Ireland | Order 1980/1992)
- Article 32 Agreement Bond (The Private Streets | Northern Ireland | Order 1980/1992)
Sewer Bonds
- Section 98 Agreement Bond (Water Industry Act 1991) – Sewer Requisition
- Section 104 Agreement Bond (Water Industry Act 1991) – Sewer Adoption
- Section 185 Agreement Bond (Water Industry Act 1991) – Public Sewer Diversion
- Article 161 Agreement Bond (Water and Sewerage Services Act / Northern Ireland / 2016) – Sewer Adoption
For more information about the road and sewer bonds we can help with, visit our dedicated road and sewer bonds page.
Cash Bonds: An Alternative to Road & Sewer Bonds
A cash bond is an alternative solution to a road and sewer bond. Cash bonds are deposited with the Local Authority or Water Company as collateral providing the Beneficiary with the necessary security.
The downside of a cash bond is that it ties up vital working capital at project commencement. If you get a road and sewer surety bond instead, it will free up working capital,, giving you the financial freedom to tackle unexpected costs that may arise elsewhere, which is crucial in the prevailing hardened surety market conditions.
Why Use RS Bonds for Your Road & Sewer Bonds?
RS Bonds are the only company in the UK that specialise exclusively in the procurement of road and sewer bonds on behalf of housebuilders. We have a 100% track record of securing bonds for our clients, no matter their financial strength.
Other reasons to work with RS Bonds include:
- Technical and Legal Advisory. As the UK’s market leader in the procurement of road and sewer bonds, we provide ongoing technical and legal advice to all clients.
- Bond Management. Our Bond Management service offers all clients continuous life-cycle technical support, such as providing key milestone dates of existing bonds and helping achieve adoption/bond cancellation.
- We make applying very easy. We’ve designed a new streamlined road and sewer bond application form that’s easy to complete.
- A dedicated client account manager. Speak to a member of our team today for guidance and support.
- FCA Regulated Broker. RS Bonds Surety is authorised and regulated by the Financial Conduct Authority (FCA) no.814847.
- Performance bonds. We can also help you to secure a performance bond via our sister website if you require one. Along with many other types of surety bonds.
Get in touch with one of our dedicated account managers today, or fill in our quote request form, and we will get in touch to help you secure your road and sewer bonds.
