Overview
Commencing a new construction project is a complex business with countless boxes to be ticked and requirements met. One of the most important factors is around the infrastructure necessary to support your project.
At the start of a build, 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.
The bonds guarantee that the necessary infrastructure will be completed to the approved and recognised standards. 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 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 the construction of a new relief road) or to contribute to other local services improvements (such as a contribution to cover the construction of new schools).
Best for
- House Builders
- Property Developers
Highlights
- 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)
Related products
Advance Payment Bonds
Get your building projects moving with the security of TMHCC’s advance payment bonds.
Performance Bonds
When it comes to your commitment to deliver, your word is your bond. Make that a reality with a performance bond.
Retention Monies Bonds
Good cashflow is crucial in the construction sector. With TMHCC’s retention bonds, you can secure contractor cashflow and your own.
Ship Building & Refund Bonds
Give your clients the security they need with TMHCC’s shipbuilding and refund bonds.
Why choose Tokio Marine HCC?
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.
More about us Financial strength