How Much Do Road and Sewer Bonds Cost?
If you need a Road or Sewer Bond, you need to know about the cost aspects before you put in your application. Generally, both Road and Sewer Bonds are calculated as a percentage of the contract value, however, there are no fixed costs for Road and Sewer Bonds. This is because the costs are very much dependent on several different factors.
This article will outline everything you need to know about the cost of Road and Sewer Bonds, including what factors influence the costs and how they are calculated.
What Factors Influence the Cost of Road and Sewer Bonds?
A variety of factors can influence the cost of Road and Sewer Bonds, which include:
- Project Size and Complexity: Larger and more complex projects typically require higher bond amounts.
- Project Duration: Longer projects may have slightly higher bond costs.
- Contractor’s Financial Strength: A contractor’s financial history and creditworthiness can influence the bond amount.
- Bond Value Confirmation: The value of the bond can be amended and reduced according to the current stage of the works.
How Are Road and Sewer Bond Costs Calculated?
As well as the type of Bond you are applying for (ie, a Road Bond or a Sewer Bond), various other factors can determine the cost of Road and Sewer Bonds. Examples of these include:
- The financial strength of the contractor/principal – Ways in which to influence this can include providing additional related companies in the form of cross-company guarantees and/or personal guarantees
- Nature of bond agreement – Bond agreements vary between local authorities, as each authority drafts its own terms and clauses according to their preferences. The points at which a bond can be reduced also differ: some authorities allow a reduction to 10% upon the issuance of the first certificate, while others may allow 25% at Part 1 certification and 10% at subsequent stages.
- Bond value – the size of the bond will influence the cost of the bond. A potential way to reduce bond fees to the level of bonding being required is to negotiate reductions with the local authority. Require our support on this? Speak to a client account manager today!
- Bond duration – bonds that are required for a long period can influence bond fees.
- Site particulars – the nature of the scheme and the associated technical considerations.
Choosing a Road or Sewer Bond
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.
Why Choose RS Bonds for Your Road and Sewer Bond Application?
RS Bonds are a surety bond specialist provider in the procurement of Road and Sewer Bonds. We use our unparalleled technical expertise and extensive Local Authority/Water Company relations, combined with established contacts within the Surety Market, to help satisfy all site infrastructure bond requirements held by developers.
Get in touch with a dedicated client account manager today to benefit from our online application completion assistance.
