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Green Building Bible, Fourth Edition
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Housing - New Build: Sewer bond

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  1.  
    • CommentAuthorRedDoor
    • CommentTimeJul 5th 2018
     
    Does anyone have experience of sewer bonds as a self-builder? Drainage contractor and Welsh Water agree that one is required but can't offer any help on how to actually set one up.
    •  
      CommentAuthordjh
    • CommentTimeJul 5th 2018
     
    Never heard of them before, but http://www.nhbc.co.uk/Builders/ProductsandServices/Roadsewerbonds/ seems to suggest that they're the contractor's problem. So if your contractor is trying to wash his hands of it, then perhaps find another contractor?
  3.  
    AFAIK the bond is to cover the repair of infrastructure (roads etc) in the event that the contractor fails to reinstate properly. The contractor should take care of this bond, if he doesn't want to you have to wonder why. As djh said perhaps find another contractor.
    • CommentAuthorCWatters
    • CommentTimeJul 5th 2018
     
    As above. The NHBC offer them as do other companies..

    https://www.nationwidesureties.co.uk/roadandsewerbonds?gclid=CjwKCAjwg_fZBRAoEiwAppvp-Zi7Q0QXO9H-OcxGJTKecA8hDa7VINwVliuG2Zh0mBQndC2dlnxSiRoCIjUQAvD_BwE

    http://www.bonds-direct.com/highways-and-sewer-bonds.php

    "If your works are in relation to a building development that involves the completion of new roads and/or sewers you may be asked to provide a cash deposit to be held until such time as they are adopted by the relevant authority.

    Also known as Section 38, Section 104 Sewer and Section 278 Highway Bonds we can help by providing the relevant authority with a Bond in place of the cash deposit guaranteeing that you will complete the road, footpath, street lighting or sewer system to a standard which they can adopt."
    • CommentAuthorRedDoor
    • CommentTimeJul 6th 2018
     
    Thanks for the links. I'll look in greater detail at the nhbc one as previously it has come across as a service for accredited developers. The other two are new to me.
    Interesting that no-one has direct experience.
    Some background - live sewer wholly owned by Welsh Water/Dwr Cymru that runs under current property but not connected to it or proposed one. Self-build project is knock down and rebuild. WW happy for sewer to be diverted by a contractor with the correct certification. I will try to find out more about why the property owner has to put up bond.
  6.  
    Posted By: RedDoorI will try to find out more about why the property owner has to put up bond.

    IMO the contractor should put up the bond otherwise they have no incentive to complete the works to the water authorities satisfaction - after all it won't be their reputation / standing with the insurance co. Of course it could be that their track record means that it might be difficult for them to get a bond in their own name, but that situation tells its own story!

    Posted By: RedDoorInteresting that no-one has direct experience.

    It could be that contractors routinely take out the bond themselves so self builders employ an authorized contractor to connect to the sewer and the contractor does the bond as part of the paper work without involving the client.
    • CommentAuthorCWatters
    • CommentTimeJul 6th 2018
     
    More info here.
    https://www.designingbuildings.co.uk/wiki/Section_104_new_sewer_adoption

    Aside: Don't confuse the reference to Section 104 of the Water Industry Act with Section 104 of the Town and Country Planning Act 1990

    Quote:

    A Section 104 adoption agreement must be entered into before construction of the sewers begins. A bond is also required which is 10% of the estimated construction cost.

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