Development Bond / Infrastructure Bond
What is a Development/Infrastructure Bond?
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.
When permission is granted for development, the planning authority may attach a condition requiring a cash lodgement or a surety bond be set aside which will be availed of should any additional work be required in the event of a developer/ contractor failing to complete the development to the required standard, which is know as the Taken in Charge Standard.
Development Bonds are to ensure that the planning conditions as set out for the specific development are met. It is the policy of the council/ local authority to ensure that all bonds remain in place until the development is completed to the satisfaction of the planning authority as per the condition of planning.
Why get a Development/Infrastructure Bond?
- For the Contractor, it may be a condition of the planning conditions to undertake the project
- It is a more favourable option to secure optimum cash flow for the contractor
- It protects the client in the event the developer fails to complete the development to the required standard
Who requires a Development Bond?
- House Builder
Who is the beneficiary of a Maintenance Bond?
- Local Authority
- Irish Water
If you are not keen on setting aside valuable cash and forfeiting cash flow benefits, then a Development Bond is the solution for you.
Our team of surety specialists would be happy to discuss your requirements and options with you.
To Get Started:
- Complete the Development Bond Proposal Form.
- Last two years consolidated audited accounts.
- Up-to-date management accounts.
- Details of banking and borrowing facilities.
[Bank information Form here]
(Client needs to send to their bank for completion.)
- Copy of the planning permission.
- Advise who your contact is in the county council.