At RS Bonds, our dedicated client account team is ready to assist you in completing your application over the phone, saving you valuable time. Read through our frequently asked questions below.
Frequently Asked Questions
What is a Road Bond?
A Road Bond, also known as a Highway Bond, is an adoption agreement which provides a financial guarantee from an independent third party (underwriter) to the Adopting Party (local authority) to ensure the Developer completes road works to the required standard.
If a Developer fails to fulfil their obligations as detailed within the adoption agreement, the Adopting Party can call upon a bond to secure the monies necessary to fund the completion or rectification of required works to bring the highways or sewers to an adoptable standard.
Once the adoption of a site’s infrastructure has been achieved, the road is transferred to the Local Authority which is then maintained at the public’s expense.
Interested in a Sewer Bond? Find out everything you need to know here
Why do I need a Highway Bond?
If a Housebuilder or developer wishes to transfer a private road into a public road, the Local Authority will require the developer to provide a Road Bond. This Highway Bond provides a financial guarantee to the local council to ensure the road is built to the agreed-upon standards, allowing for the adoption of the road.
If you’ve been caught off guard about this, and are just about to commence work, we can help you procure the Road Bond ASAP, to make sure there are no delays.
Do you require an urgent Road Bond and is it holding up works on site?
Owing to our unique position in the market, we hold an extensive, exclusive and bespoke underwriting panel, enabling us to source immediate bond solutions.
Formal quotations can be provided anywhere between 5-7 working days upon receipt of a full application form and supporting information.
If you’ve used our services in the past, you’ll receive a quote faster as we’ll have access to previously submitted financial and application form data.
What information do I need to provide?
To apply for a Road Bond, please reach out to us. Our account manager team will require:
- Completed & Signed Application Form
- Most Recent Audited Financial Accounts
- Latest Management Accounts (if available)
- Copy of Draft Agreement (if available)
Please note that the possibility of additional security will aid your application.
Our team is highly experienced and specialised in procuring Road Bonds, and can help you complete your application form over the phone if required.
How much does a Road Bond cost?
The cost of a Road Bond can vary and is influenced by several factors – such as your financial strength, the availability of additional security, the bond agreement/reduction points, and the status of the works.
What information do underwriters require?
Underwriters require three sets of accounts including the latest management accounts, the bond wording, and a signed application form.
What is a broker of record letter?
A broker of record is typical in this industry, and when underwriters require one it usually indicates that one or more brokers have already approached that surety on behalf of the developer.
What is a company guarantee?
This is a company counter indemnity (cross company guarantee) which effectively provides the underwriter an indemnity from your company in the event you fail to fulfil your obligations and the water company / local authority makes a claim upon the bond. It is a standard requirement with most Surety Bonds.
How can I strengthen my application?
The best way to strengthen your application is by:
- Improving your company financials
- Limiting your bond exposure.
- Providing as much information as you can with regards to your development.
How much will it cost?
Ultimately, it’s an insurance product, insuring against perceived risk of the underwriters, so just like car insurance the premiums can fluctuate massively according to the type of car, age, and history of the driver. As a result, the cost will depend on the profile of your company, which the application allows us to establish.
How long will it take to receive a quote?
We aim for 5 working days; however, this may fluctuate slightly. The lead time for a quotation is dependent on the responsiveness of both developers and underwriters. Sometimes underwriters ask for further information, which they require answers for before continuing and reviewing the application. To summarise, the more responsive you are and the more detailed the application is, the quicker we can provide a quotation.
