Trying to obtain Road & Sewer Bonds from warranty providers can prove to be difficult at times, especially for SMEs. Warranty providers focus primarily on underwriting warranty and insolvency cover on developments, and therefore, they don’t typically specialise in providing and advising on Road and Sewer Bonds.
In this article, we will take a look at why exactly developers need Road & Sewer Bonds, why so many SME’s struggle to obtain these Bonds through warranty providers, why you should choose a Road & Sewer Bond specialist, and much more.
Why Do Developers Need Road & Sewer Bonds?
Road & Sewer Bonds are a legal requirement for all developers in the UK who intend to transfer responsibility for roads and sewers to the local authority or water company. Transferring this obligation to an adopting body that will maintain the infrastructure in perpetuity (at the public’s expense) can be a key factor in helping developers sell plots. Developments where site infrastructure remains private can often reduce buyer confidence.
Is It Possible To Obtain Road & Sewer Bonds From Warranty Providers?
Most warranty providers in the UK offer Road and Sewer Bonds for housebuilders and developers. Therefore, if these bonds are readily available when arranging the warranty, we would always recommend taking advantage of this option.
Developers and contractors however often struggle in obtaining the necessary bonding requirements, which can leave them not knowing where to go.
At RS Bonds, we partner with a number of warranty providers, and employer agents across the UK who often seek our support in obtaining section bonds for their clients.
Advantages Of Using Your Warranty Provider For Road & Sewer Bonds
While larger developers will not struggle to use their warranty provider for Bonds, the advantages that it offers them are not much different. The main and sole advantage for these developers is convenience, as they will already have numerous warranties with the companies and already have a working relationship. As a result, the process is often quicker and more straightforward due to this existing relationship.
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Why You Should Choose Specialist Road & Sewer Providers
Here at RS Bonds, we are proud to be the only company in the UK to specialise solely in the procurement of Road & Sewer Bonds. Because of our unique position within the industry, we have extensive relationships with local authorities and water companies, as well as established contacts within the Surety market.
In addition to our 50 years of industry experience, guaranteed zero cash collateral, best price guarantee, exclusive underwriter partnerships, and other selling points, we can also best value quotations to all our customers.
If you have approached your warranty provider and they are unable to support you or provide a bond, get in touch, and we will assist you along the way. To get in touch with our team of experts, contact us at 0161 518 9616 or complete our online Road & Sewer bond application form today.
