Features & Purpose of Road and Sewer Bonds

In this blog, we’ll explore the purpose and key features of Road and Sewer Bonds, and explain how RS Bonds can support your business in securing the right surety bond solution with ease.

What Are the Features of A Road and Sewer Bond?

The terms of a road and sewer bond can differ based on the project, but broadly speaking, they consist of the following:

• Financial Guarantee – Road and Sewer Bonds are issued by a bank or surety provider and the value of the bond typically represents a percentage of the estimated costs to complete the road or sewer works. 
• Bond Duration – Road and Sewer Bonds are procured for a minimum industry standard two year period and continue until the associated site infrastructure is completed, inspected and adopted. Road and Sewer Bonds may be reduced at key completion milestones throughout the phase of the project, such as when the bond is put on maintenance. 
• Triggers for Calling Upon Bond – Insolvency of the developer or works not completed to an adoptable standard within the agreed timeframes.
• Conditions of Bond – These are specified within the agreement and consist of design specifications, timelines, inspection procedures and conditions for adoption and bond cancellation.
• Example Schemes – Road and sewer Bonds are typically procured for housing developments with new access roads and drainage systems and also for mixed use/commercial developments, requiring new site infrastructure.

What is the Purpose of A Road and Sewer Bond?

A Road or Sewer Bond is requested by a local authority or water company to ensure site infrastructure is built to the correct standards and specifications outlined in the contract.These bonds provide financial protection to local authorities and water companies and ultimately protect the public purse from non-performance of housing developers.

RS Bonds are a dedicated Road and Sewer Bond specialist. Contact our team to find out more information about your project and we’ll help you get the bond you need.

Road & Sewer Bonds We Can Help With

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) 
• Section 278 Agreement Bond (Highways Act 1980) 
• Section 184 Agreement Bond (Highways Act 1980)
• Section 220 Agreement Bond (Highways Act 1980)
• Section 21 Agreement Bond (Road / Scotland / Act 1984) 
• 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)
• Section 104 Agreement Bond (Water Industry Act 1991) 
• Section 185 Agreement Bond (Water Industry Act 1991) 
• Article 161 Agreement Bond (Water and Sewerage Services Act / Northern Ireland / 2016)

For more information about the road and sewer bonds we can help with, visit our dedicated road and sewer bonds page.

Why Use RS Bonds for Your Road & Sewer Bonds?

RS Bonds are the only company in the UK that specialise exclusively in the procurement of road and sewer bonds on behalf of housebuilders. We have a 100% track record of securing bonds for our clients, irrespective of their financial strength. 

Other reasons to work with RS Bonds include:

• Technical and Legal Advisory. As the UK’s market leader in the procurement of Road and Sewer Bonds, we provide ongoing technical and legal support to all clients.
• Bond Management. Our Bond Management service offers all clients continuous life-cycle technical support, such as providing key milestone dates of existing bonds and helping achieve adoption/bond cancellation.
• We make applying very easy. We’ve designed a new streamlined Road and Sewer Bond application form that’s easy to complete.
• A dedicated client account manager. Speak to a member of our team today for guidance and support.
• FCA Regulated Broker. RS Bonds Surety is a trading style of Indevor Bonds and Guarantees Limited who are authorised and regulated by the Financial Conduct Authority (FCA) no.814847.
• Performance bonds. We can also help you to secure a performance bond via our sister company, CG Bonds if you require one, along with many other types of surety bonds.

Get in touch with one of our dedicated account managers today, or fill in our quote request form, and we will get in touch to help you secure your Road and Sewer Bonds.