Road and Sewer Bonds

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What are Road and Sewer Bonds?

As a Developer you have an obligation to achieve adoption status of a site’s road and / or sewers. A Road Bond and Sewer Bond will provide an insured financial guarantee should you fail to fulfil the adoption agreements obligations which are:

Section 38 Agreement Bond (Highways Act 1980) – Adoption of a New Highway

Section 278 Agreement Bond (Highways Act 1980) – Alteration to a Public Highway

Section 220 Notice (Highways Act, 1980) – Advanced Payment Code

Scottish Road Agreement Bond (Security For Private Road Works / Scotland / Regulations, 1985)

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

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

The adopting party who will be typically a Local Authority or Water Company is able to claim against the bond and use those monies as necessary to either complete or rectify what is required in order to bring either the roads or sewers to an adoptable standard.

Once a development site has been adopted, the road or sewer is transferred to the Local Authority or Water Company and is subsequently maintained at the public’s expense.

Here at Peacock Insurance, our dedicated warranty team have access to products from across the market including financially ‘A’ rated insurers, direct access to underwriters with many years of experience within this field as well as same-day quotations with some products. 

If you need to talk to one of our experts directly please call our Sales Hotline on 02476 437 626 or complete the quotation request form.

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