RS Bonds Surety - Sewer Bonds

Our primary role is to work with housebuilders and developers to assist them in satisfying the Adopting Parties bond requirements in relation to the following Legal Agreements:

  • Section 104 Agreement Bond (Water Industry Act 1991)
  • Section 185 Agreement Bond (Water Industry Act 1991)

Our exclusive commitment and expert knowledge of the Sewer Bonds market means we can add value and provide more favourable terms than elsewhere achievable in the general surety or insurance markets.

Section 104 Agreement Bond (Water Industry Act, 1991) – Sewer Adoption

These agreements are entered into by Developers to provide a legal vehicle to enable the status and responsibility of a new sewer networks to be transferred from them to the Statutory Water Company providing they have been constructed to the required specification and standards.

The relating Section 104 Agreement bond is calculated at 10% of the estimated construction cost of the sewers (33% in Wales).

Section 185 Agreement Bond (Water Industry Act, 1991) – Public Sewer Diversion

These agreements are entered into by Developers where it has been identified that a public sewer is compromising the viability of a development project and the Developer wishes to divert or alter the route of an existing adopted public sewer.

The relating Section 85 Agreement bond is calculated at 100-110% of the estimated construction cost to undertake the works and provides a financial guarantee that the Developer will undertake the works to the Water Companies requirements.