CONTRACT BONDS

 

Bonds (or guarantees) are written legally binding documents issued to an employer guaranteeing compliance by a contractor with his obligations. A bond also ensures that the employer or local authority will be indemnified up to a specified amount if the contractor fails to fulfil his obligations under the contract. There are a number of different types of bonds. Those most commonly used are Contract Performance Bonds and Contract Development (Roads and Services) Bonds.

 

PERFORMANCE BONDS

 

Contract Performance bonds provided to main contractors indemnify the employer in respect of building and civil engineering contracts up to 10% or 25% of the contract value. The bond provides security to the employer should the original contractor fail to complete the project. The bond will cover any extras in having to appoint a replacement contractor. A bond can also be put in place by a subcontractor to indemnify the main contractor or the employer.

 

DEVELOPMENT BONDS (Road Bonds)

 

Contract Development bonds are available to developers involved in private housing developments to satisfy the requirements of Local Authorities. The bond provides security to the Local Authority to ensure proper completion of sewers, roadways, public lighting and open spaces etc. Development Bonds are also referred to as Road Bonds.

 

NEW HOMES 10 YEAR WARRANTY

 

Our Insurer partners 10 year New Home Warranty (Association of Mortgage Lenders Compatible) has been designed for developers working on residential developments and conversions. All of our partners New Home Warranty clients receive the following great benefits: Insurers In house technical audits ; Insurers full technical support ; Cover for mixed-use developments ; Cover often available once construction has commenced

 

SOCIAL HOUSING WARRANTY

 

Social Housing Warranty, which provides Housing Associations and Registered Social Landlords with up to 12 years cover on residential developments and conversion projects. The Social Housing Warranty now includes a new "right to acquire" facility. Should any of your tenants wish to exercise their "right-to-acquire" in the first 5 years of your policy, we will provide a new 10 year warranty entirely free of charge, providing you and your clients with up to 15 years cover. Cover also extends to: Cover for Contaminated Land (if an Approved Inspector is used on site); Extensions for builder insolvency and loss of rent ; Cover for Building Control function (if an Approved Inspector is used on site) ;  Cover often available once construction has commenced

 

COMMERCIAL PROPERTY WARRANTY

 

Commercial Buildings Warranty has been set up for developers working on commercial projects, such as offices, warehouses, schools and shops.

 

It won’t cost you a penny to request a quote, and you don’t need to register to be eligible for the scheme. In house technical audits ; Full technical support ; Cover often available once construction has commenced

 

COMPLETED HOUSING WARRANTY

 

If your house is less that 10 years old and you want to sell it, you’ll need to have a warranty in place before lenders will release funds to potential buyers. The Completed Housing Warranty provides cover for individuals in such an event. The scheme is not generally open to developers, however cases will be looked at on an individual basis. Including ; In house technical audits ; Full technical support

 

SELF BUILD WARRANTY

 

The Self Build Warranty has been specially designed to make getting a structural warranty as straightforward as possible. Unlike an Architect’s Certificate, our structural warranties are insurance policies, providing you with cover in the event of a defect occurring on your property. In addition, should you wish to sell your property within 10 years, a Self build warranty will make your property more attractive to buyers and lenders, giving you a real competitive edge in what is a fiercely competitive market. Including ; In house technical audits ; Full technical support ; Cover often available once construction has commenced.

 

ADVANCE/STAGE PAYMENT BONDS

 

An Advance/Stage Payment Bond is a guarantee in favour of a customer to provide security for monies which have been paid in advance of the goods or services being provided by the Surety.

 

Advance Payment Bonds (APBs) are widely used in all types of industries but are particularly prevalent in the engineering, manufacturing and construction sectors.

 

APBs are a guarantee in favour of a customer to provide security for monies, which have been paid in advance of the goods or services being provided.

In common with other forms of bonds this type of guarantee is usually best provided by a surety company rather than a bank as it can generally be provided on an unsecured basis as it does not tie up valuable working capital and in addition more equitable bond wordings can be arranged.

 

Advance/Stage Payment Bond Applicant/risk

Construction Companies

Engineering Companies

 

Advance/Stage Payment Bond Beneficiary

Local Authorities

Government Bodies

Commercial Companies