If your project is held up because you’re struggling to obtain a road or sewer bond, you’re not alone. Many of the developers and contractors that we speak to have expressed the difficulties and delays when trying to obtain road or sewer bonds required for adoption.
At RS Bonds, we specialise solely in procuring road and sewer bonds. In this guide, we’ll explain:
- How long it should take to get bonded
- What slows the process down
- How to speed it up
| RS Bonds work closely with developers and contractors through every stage of the application process so your application goes smoothly. Get your bond as quickly as possible. Get in touch today. |
What Is a Road or Sewer Bond?
Road and Sewer Bonds are a legal requirement if a developer wishes to transfer the responsibilities and obligations of a new road or sewer to the local authority or water company.
What Affects the Road & Sewer Bond Timeline?
Securing a road or sewer bond isn’t always straightforward and delays can be costly.
Developers can be surprised when quick formalities become an obstacle themselves, especially when they are ready to commence on a project, or they are required for project handover and selling of units on site. In reality, several moving parts can slow the process down, so it’s important to understand what might hold up your application.
Below, we’ve outlined the most common reasons bond applications get delayed:
- Incomplete or delayed draft agreements – If bond agreements have yet to be finalised by the Local Authority or Water Company, it can put applications on hold as underwriters are unable to issue a bond without a finalised bond agreement.
- Bond reduction negotiations – These must be agreed between the developer, local authority, and surety.
- Financial strength checks – If your company has limited trading history or weaker financials, underwriters may request additional conditions to be provided and satisfied.
- Market conditions – Economic downturns can subdue the surety bond market appetite, sometimes increasing Service Level Agreements (SLAs) in the industry.
| Why RS Bonds? As the UK’s only dedicated Road and Sewer Bond specialist, we’ve streamlined the application process and we measure our performance based on our ability to consistently meet our client’s Service Level Agreements (SLAs). Get in touch for expert support. |
What Is The Timeline For Obtaining A Section Bond?
The timeline for applying and receiving section bonds for roads and sewers can vary drastically. The overall process can be influenced by factors such as:
- The responsiveness of local authorities/water companies
- The responsiveness of brokers
- The responsiveness of surety providers
- Market conditions & volatility
Our Road & Sewer Bond Timeline
While no two applications are the same, RS Bonds aims to deliver:
- Initial quote within 5 working days
- Bond issuance within 24 hours (provided all documents are satisfied and completed)
Owing to our extensive relationships with Local Authorities and Water Companies across the UK, combined with our technical expertise on the adoption process, we can efficiently navigate and resolve any challenges encountered.
How to Speed Up the Application Process
Tight deadlines leaves little room for unnecessary back-and-forth, so your bond procurement process needs to be as quick and efficient as possible.
You can also significantly reduce turnaround times by choosing a value-added broker who understand the technical intricacies of Section Bonds.
Here are some steps you can take to speed up the application process:
1. Complete Your Application in Full
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.
2. Work With a Specialist Bond Provider
General Insurance Brokers, Warranty Providers, and Insurers often lack technical knowledge in this unique and niche area of the surety market. RS Bonds are the UK’s only dedicated broker for road and sewer bonds, who have access to an extensive panel of underwriters, which can reduce the time taken to receive a quotation.
RS Bonds share relationships with over 90% of Local Authorities and Water Companies, allowing us to expedite the issuance of bonds during strict time constraints.
Get a Road or Sewer Bond Quote Today
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Our team supports you through every step of the application process, from the initial application stage, through to reviewing bond agreements, to the final issuance of bonds.
