InSite | What is a road and sewer bond?

What is a road and sewer bond?

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 from the developer by the local authority or water board.


So what function does the bond perform, and how does it work?


How a road and sewer bond from Premier Guarantee 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, described below:


  1. The developer commits to construct roads and sewers to the adopting parties’ specifications
  2. The adopting parties commit to adopt the infrastructure once all works are approved
  3. 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


Road and sewer bonds


The bond provides a guarantee to the authority and/or water board that the developer will construct roads and sewers in accordance with the adoption agreement. The infrastructure, once completed, is then adopted by the local authority and/or water board and maintained at the public’s expense.


If the developer fails to meet their obligations under the agreement for whatever reason, the local authority/water board can call on the bond to secure the money necessary to repair or complete the work.


How to apply for a road and sewer bond


Road and sewer bonds from Premier Guarantee are separate from warranty and building control services and must be applied for separately. A fee and conditions for acceptance will apply; generally, the better your “risk rating” with us, the more likely you are to be accepted.


Apply here.


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Every care was taken to ensure the information in this article was correct at the time of publication (September 2022).

Ref: MK-3300

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