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Anglian Water requires a surety bond to be provided for every Section 104 Sewer Adoption Agreement that is entered into. The amount of this surety bond is equivalent to 10% of the estimated cost of the works as calculated by Anglian Water.
The surety bond as a principal indemnifies us in respect of any expenditure which we may reasonably incur in accordance with the Section 104 Sewer Adoption Agreement; by reason of the failure of you the Developer to observe or perform in full its obligations according to the Section 104 Sewer Adoption Agreement, whether or not the Section 104 Sewer Adoption Agreement has been terminated or disclaimed. A surety bond can be provided in the form of a cash deposit OR an indemnity provided by a Surety Provider up to a Financial Limit, as specified in the Section 104 Sewer Adoption Agreement.
To avoid the need for you the Developer to provide a surety bond for each individual Section 104 Sewer Adoption Agreement, Anglian Water may provide a bond waiver facility to you in relation to Section 104 Sewer Adoption Agreements entered into between Anglian Water and you the Developer, subject to our qualifying criteria being met.