What is a Section Bond?

A Section Bond is a form of surety required by a local authority, water authority or highway authority to guarantee that works such as roads, sewers or highways will be completed to an agreed standard under an adoption or agreement.

Which types of Section Bonds can you arrange?

We can arrange Section 38 bonds for new highways, Section 104 bonds for sewers and drainage, and Section 278 bonds for works to existing highways. We can also look at other adoption or agreement bonds requested by authorities on a case by case basis.

Why do authorities require Section Bonds?

Authorities require Section Bonds to ensure that if the developer or contractor does not complete the required works, they have recourse to funds to complete them. Using a surety bond allows the developer to meet these obligations without having to use bank guarantees or tie up overdraft facilities.

Can you help if the authority has its own bond wording?

Yes, many councils and water authorities use their own bond wording. We work with surety markets that are familiar with these and we will try to place the bond on the wording required by the authority, provided it is acceptable from a risk perspective.

What information is required to apply for a Section Bond?

We usually ask for details of the development, a copy of the draft agreement, the bond amount required, recent financial statements, management accounts where available and a completed application form. This allows our surety partners to review the request and provide terms.

Section Bonds

What are Section Bonds in the UK?

A Section Bond, often referred to as a road or sewer adoption bond, is a UK surety guarantee required by local authorities or water companies to ensure a developer completes roads, sewers or public infrastructure to the agreed standard. These bonds are usually issued under Section 38 or Section 278 of the Highways Act 1980, or Section 104 of the Water Industry Act 1991. If the developer fails to complete the works, the authority can call on the bond to finish them, protecting public funds and ensuring the development can be adopted.

Most common section bonds,

Section 38 Agreement Bond (Highways Act 1980)
Section 278 Agreement Bond (Highways Act 1980)
Section 220 (APC) Agreement Bond (Highways Act 1980)
Section 98 Agreement Bond (Water Industry Act 1991)
Section 104 Agreement Bond (Water Industry Act 1991)
Section 185 Agreement Bond (Water Industry Act 1991)
Scottish Road Agreement Bond (Security for Private Road Works Regulations 1985)

Surety Bonds for Infrastructure Agreements

We specialise in providing section bonds to support the successful completion of infrastructure projects governed by the Highways Act 1980, Water Industry Act 1991, and the Security for Private Road Works Regulations 1985, Our range of Section bonds are detailed below but if not listed pleae ask.

Section 38 Agreement Bond (Highways Act 1980)

A Section 38 Agreement Bond is required when a developer wishes to adopt a new highway. This bond ensures that the developer completes the necessary works in accordance with the agreement and that the local authority is protected against potential financial losses.

Section 278 Agreement Bond (Highways Act 1980)

When a developer proposes alterations to an existing highway, a Section 278 Agreement Bond is essential. This bond guarantees the completion of the agreed-upon alterations and safeguards the local authority's interests.

Section 220 (APC) Agreement Bond (Highways Act 1980)

Section 220 Agreement Bond is necessary for the construction of a private street. It ensures that the street is built to the required standards, and the bond serves as a financial guarantee for the local authority.

Section 98 Agreement Bond (Water Industry Act 1991)

For works related to water supply, a Section 98 Agreement Bond is required. This bond guarantees the completion of the agreed-upon works, protecting the water undertaker against potential financial losses.

Section 104 Agreement Bond (Water Industry Act 1991)

Section 104 Agreement Bond is essential for sewerage works. It ensures that the developer completes the sewerage works in accordance with the agreement, providing financial security for the water undertaker.

Section 185 Agreement Bond (Water Industry Act 1991)

When a developer needs to carry out works related to water supply or sewerage outside their property boundary, a Section 185 Agreement Bond is required. This bond guarantees the completion of the works as specified in the agreement.

Scottish Road Agreement Bond (Security for Private Road Works Regulations 1985)

In Scotland, the Security for Private Road Works Regulations 1985 necessitates the Scottish Road Agreement Bond. This bond ensures that the private road works are completed to the required standards, providing financial protection for relevant authorities.

Our commitment is to facilitate the successful completion of infrastructure projects by offering reliable surety bonds. We understand the intricacies of each Section bond, providing tailored solutions to meet the unique requirements of developers and authorities.

For inquiries and further information, please contact us. We are here to support your infrastructure project with the assurance and security that our surety bonds provide. Call now to speak to one of our specialist Bond Brokers – 02476 017646

Who Do We Work With?

We work with Developers and Housebuilders of all sizes from Private Individual to large multinationals. We have relationships with many local authorities and are able to liaise directly with them to expediate the process and complete the vast amount of paperwork often required.

How Can we Help?

We are able to source highly competitive quotations for your Road or Sewer Bond requirement from multiple providers ensuring all our clients receive the best possible terms. We have the widest market access ensuring we offer the best possible solution to your needs.

The placement of bonds and guarantees through the surety market, as alternatives to bank guarantees, can help companies by keeping bank facilities available to meet cash flow requirements.

Bonds and guarantees are written promises to pay for direct loss or damage suffered by a third party as a result of a breach of contract. Many types of bond or guarantee are available for almost any area of risk, subject to underlying security and the risk being acceptable to the guarantor.

Call now to speak to one of our specialist Bond Brokers – 02476 017646

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Do you need structural warranty cover also?

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Other Bonds Commonly Requested Include:

Performance Bond

Advanced / Stage Payment Bond

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Section Bonds

What are Section Bonds in the UK?

Most common section bonds,

Section 38 Agreement Bond (Highways Act 1980)

Section 278 Agreement Bond (Highways Act 1980)

Section 220 (APC) Agreement Bond (Highways Act 1980)

Section 98 Agreement Bond (Water Industry Act 1991)

Section 104 Agreement Bond (Water Industry Act 1991)

Section 185 Agreement Bond (Water Industry Act 1991)

Scottish Road Agreement Bond (Security for Private Road Works Regulations 1985)

Surety Bonds for Infrastructure Agreements

Section 38 Agreement Bond (Highways Act 1980)

Section 278 Agreement Bond (Highways Act 1980)

Section 220 (APC) Agreement Bond (Highways Act 1980)

Section 98 Agreement Bond (Water Industry Act 1991)

Section 104 Agreement Bond (Water Industry Act 1991)

Section 185 Agreement Bond (Water Industry Act 1991)

Scottish Road Agreement Bond (Security for Private Road Works Regulations 1985)

For inquiries and further information, please contact us. We are here to support your infrastructure project with the assurance and security that our surety bonds provide. Call now to speak to one of our specialist Bond Brokers – 02476 017646

Who Do We Work With?

How Can we Help?

Call now to speak to one of our specialist Bond Brokers – 02476 017646

--------------------

Do you need structural warranty cover also?

--------------------

Other Bonds Commonly Requested Include:

Performance Bond

Advanced / Stage Payment Bond

GET A QUOTE

Brokers