What are Road and Sewer bonds?

Road and Sewer bonds are a form of surety provided on behalf of a property developer or contractor to a Local Authority under the relevant Highways Act or Water Company under the Water Industry Acts to ensure the roads and sewers can be completed to adoptable standard. The value of the bond required will decrease as the project progresses.

Why use LABC Warranty?

LABC Warranty provides FREE road and sewer bonds subject to terms and conditions which includes an assessment of developer or builder experience. These terms can be accessed here.

What are the conditions of the application?

  • You must be an LABC Warranty registered Developer with a premium rating of 1* - 6.
  • You must have a valid LABC Warranty application relating to the development site and all homes must be registered with LABC Warranty.
  • The bond required must involve an element of residential development. • For multi–phased developments, each phase must be covered by a separate bond. The bonds cannot run concurrently.
  • The works noted in the Bond Agreement should be completed within a maximum of 5 years from application.
  • The surety noted within the Bond Agreement is MD Insurance Services Ltd.
  • The requested Limit of Indemnity applied for must be reasonable i.e. the Scheme Administrator may request further information in respect of the calculations of costs in respect of the works to be bonded.
  • The Limit of Indemnity of each individual Bond Agreement cannot be more than £500,000.


Road and Sewer application form
Road and Sewer bond rules