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ROAD AND SEWER BONDS

Also known as Section 38 Road, Section 104 Sewer and Section 278 Junction, these bonds guarantee the local authority or water company that a road, footpath, street lighting or sewer system will be provided to a standard which they can adopt.

 

Application Process

Road and Sewer Bond Application Process for Single Project or Facility:
Fast service and simplicity are important to you and your clients. Nationwide Sureties Ltd offer a very quick turnaround service while keeping the process easy to understand by using as little jargon as possible.

What we require from you

A copy of your last published annual accounts (if you are part of group ,group accounts, too)
A copy of your latest management accounts
Execute legal documents sent to you when you have accepted our terms.
Send us a bank transfer covering the premium invoiced

On receipt of this information, the application will be submitted to our panel of underwriters for their consideration. On the successful underwriting, we should be in a position to offer competitive non-binding indications of terms, as quickly as possible.

 

Road and Sewer Bond Facility

When you do not have a particular project in mind but are planning for your future needs, please provide us:
A copy of your last published annual accounts (if you are part of group ,group accounts, too)
A copy of your latest management accounts
An outline of your business
Information on the size of the bonding facility you require

Once you have established facilities through us, you will know the limit of the facility and the likely cost of future bonds. Our underwriters financial review of your business and legal work (such as counter-indemnities) before you need your first bond will enable our underwriters to issue bonds for you without delay. All we ask is that you complete an application for each job to be bonded and provide an occasional update on your business financials.

 

What is a Section 38  Agreement?

Section 38 Agreements are Highways Bonds as required by local authorities. Including the Scottish Irish equivalents. The Section 38 is put in place between the Developer and The Council or relative Authority to ensure the completion and adoption of a new road system on a development. The agreement is voluntary and between a developer and the Council. The developer agrees to Bond or place cash collateral to the value of the Road Works and covers that roadway until the end of the Making Good of Defects period and issue of the final certificate by the Council at the point of adoption. The Bond risk ceases at this point. The value is usually sufficient to ensure the Council can construct/repair the road if the developer fails to do so.

 

How do Section 38 Agreements work?

The developers proposals are agreed and technical drawings are approved. The Council produces a draft Agreement for the developer to include the developers proposals. The developer and their surety for the bond sign the Agreement. The Agreement is then completed by the Council.The agreements are in place to cover developer/contractor failure either by sub-standard works or liquidation of the contracting company prior to completion of the works or adopting the road.

 

What is a Section 278 Agreement ?

Again a Highways Bond taken out with the local council by the developer to cover junction alterations. (Examples are turning circles, access points, crossings, roundabouts, traffic signals etc.) The agreement is voluntary and between a developer and the Council. This agreement contains a bond, which is sufficient to ensure the Council can construct/repair the road junction if the developer does not.

 

How do Section 278 Agreements work?

The developers proposals are agreed and technical drawings are approved. The Council produces a draft Agreement for the developer to include the developers proposals for the junction/crossing. The developer and their surety for the bond sign the Agreement. The Agreement is then completed by the Council. The agreements are in place to cover developer/contractor failure either by sub-standard works or liquidation of the contracting company prior to completion of the works

 

What is a Section 104  Agreement?

These are sewers bonds as required by local authorities, including the Scottish Irish equivalents . Other highways bonds can also be facilitated. A statutory agreement for adoption, or Section 104 agreement (so called because it is made under section 104 of the Water Industry Act 1991), is an agreement between the owners of a private sewer (usually a developer) and the relevant water authority whereby, subject to the owner constructing the sewer to an agreed standard and maintaining it for an agreed period the water authority will adopt it and it will thereafter become part of the public sewer system.
Other highways bonds not mentioned above can also be facilitated.