Developers Road & Infrastructure Bonds

If you are a house builder or a property developer intending to commence a new development, the relevant authorities (often the municipality or local authority) may require you to provide bonds to secure the cost of completing the necessary infrastructure, particularly in relation to the roads and sewers.


  • Secures the cost of constructing the necessary infrastructure in relation to property development (both housing and non-housing)
  • Road bonds (Highways Act bonds)
  • Mains water requisition bonds
  • Sewer bonds
  • Planning bonds (Section 106 bonds)

Best For

  • House builders
  • Property developers

Summary of Coverage

Prior to the commencement of a new development, house builders and a property developers may be required to provide bonds to secure the cost of completing the necessary infrastructure, including roads and sewers. The bonds concerned guarantee that the relevant infrastructure will be completed to the approved and recognised standards. Once completed, the infrastructure often becomes designated as public infrastructure (meaning that will be maintained in to the future at the expense of the local authority concerned).

The bond sum usually represents the relevant authority’s assessment of the total cost of properly constructing the roads and sewers concerned. The period of the bond covers the construction period and maintenance periods until such time as the roads and sewers have been ‘taken over’ by the relevant authority. You may also be required to post bonds to cover the cost of modifying existing infrastructure (such as new or improved road junctions) or other off-site works (such as construction of a new relief road) or to contribute to other local services improvements (such as contribution to cover construction of new school).

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Tokio Marine HCC is a leading specialty insurance group with offices in the United States, Mexico, the United Kingdom and Europe, transacting business in approximately 180 countries and underwriting more than 100 classes of specialty insurance. Our products and capabilities set the standard for the industry, and many of our almost 3,000 employees are industry-leading experts. Each of our highly entrepreneurial businesses are equipped to underwrite special situations, companies and individuals, and acts autonomously to deliver effective solutions. 
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