Road and Sewer Bonds
One of the more specialist services provided by Premier Guarantee to builders and developers is a road and sewer bond. They become relevant for most developments that require the construction of new roads and sewers and are often requested by the local authority or water board.
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What are road and sewer bonds?
A road or sewer bond is a form of surety provided on behalf of a property developer or contractor to a local authority under the relevant Highways Act or water company under the Water Industry Acts.
They ensure the roads and sewers can be completed to an adoptable standard. The value of the bond required will decrease as the project progresses.
How a road and sewer bond with us works
Normally, the local authority and/or water board will request an adoption agreement from the developer, outlined through a series of building regulations.
The adoption agreement typically takes the form of a tri-party arrangement:
- The developer commits to construct roads and sewers to the adopting parties’ specifications
- The adopting parties commit to adopt the infrastructure once all works are approved
- The surety - the bond - provided by Premier Guarantee as Managing General Agent for TMHCC agrees to pay for any outstanding or satisfactory works if required
How to apply for a road and sewer bond
To apply for a road and sewer bond through Premier Guarantee, please supply the following:
- Completed application form, including your Premier Guarantee site registration number
- Bond wording/agreement
- Site plan
- First application only: Latest annual full accounts of the applicant company and any group/parent/holding companies (abbreviated accounts will be insufficient); and
- First application only: The latest monthly or quarterly management figures (including Profit & Loss and Balance Sheet information) of the applicant company or consolidated management accounts where the applicant is part of a group
Please submit all documents to bonds@premierguarantee.co.uk
What are the conditions of the application?
- You must be a Premier Guarantee Registered Developer with a premium rating of 1* - 6. Premier Guarantee Registered Developers with a lower rating may be eligible in some circumstances – please get in touch
- You must have a valid Premier Guarantee application relating to the development site and all homes must be registered with Premier Guarantee
- The bond required must involve an element of residential development
- The works noted in the Bond Agreement should be completed within a maximum of 5 years from application
- The surety noted within the Bond Agreement is commercial insurance specialist Tokio Marine HCC
Bonds available from Premier Guarantee
| Road | Sewers |
|---|---|
| Section 38, Highways Act 1980 (Adoption of a New Highway) | Section 98, Water Industry Act 1991 (Sewer Requisition) |
| Section 278, Highways Act 1980 (Alteration to a Public Highway) | Section 104, Water Industry Act 1991 (Sewer Adoption) |
| Section 220, Highways Act 1980 (Advanced Payment Code) | Section 185, Water Industry Act 1991 (Public Sewer Diversion) |
| Section 21, Roads (Scotland) Act 1984 (Adoption of a New Highway) | Article 161, Water and Sewerage Services Act (Northern Ireland) 2016 (Sewer Adoption) |