Developers and landowners qualify for a Section 106 Bond Agreement as local planning authorities often require them, given the potential impact of their proposed developments on the local community and infrastructure. These agreements are used to mitigate the effects of development, and local planning authorities commonly make them a prerequisite for granting planning permission.

One prevalent obligation in Section 106 Bond Agreements is the inclusion of affordable housing within a development, addressing local housing needs. These agreements may also require developers to contribute to infrastructure enhancements like roads, public transport, schools, and healthcare facilities. Additionally, some developments may be mandated to provide community amenities or public spaces.

In summary, developers and landowners engage in Section 106 Bond Agreements to align their projects with local planning policies, foster community welfare, and support necessary infrastructure improvements.

The duration of a Section 106 Bond Agreement can vary and is typically determined during negotiations between the developer and the local planning authority. The agreement’s length depends on the specific terms and obligations outlined within it, which are tailored to the needs of the development and the local area.

In many cases, Section 106 Bond Agreements cover obligations that must be fulfilled during the construction and development phase, as well as responsibilities that extend into the post-development phase. This can range from several years to decades, depending on the complexity and scope of the development and the long-term impact it may have on the local area.

The primary cost associated with Section 106 Bond Agreements fluctuates depending on the financial contributions or obligations that the developer or landowner must fulfil. This can include funding for affordable housing, infrastructure improvements, environmental mitigation, or community amenities. The magnitude of these contributions varies based on the project’s size, impact, and local requirements.

CG Bonds leverages its deep-rooted technical knowledge and expertise on bond idiosyncrasies to ensure our clients receive the most competitive terms available in the market. Additionally, our broad and exclusive underwriting panel empowers CG Bonds to provide a Best Price Guarantee policy, assuring our clients receive the most favourable terms.

At CG Bonds Surety we have unrivalled specialist acumen on various bond types stemming from our technical and construction background, placing us in a unique position to offer technical knowledge on Section 106 Bond Agreements. In addition to this, our flawless 100% track record in fulfilling bond requirements assures our clients that they will receive favourable terms, even within the current risk-averse surety market.

Furthermore, a dedicated client manager will assist you through the entire application process ensuring a smooth and hassle-free experience. If you require immediate price indications for tender applications, we can provide them promptly to expedite the process.

• 100% Track Record in Fulfilling Bond Requirements – Our flawless track record guarantees our client’s terms on all bond applications.
• Exclusive Underwriting Partnerships –CG Bonds has meticulously assembled an extensive and exclusive underwriting panel.
• Bond Finance Options – CG Bonds offers clients deferred payment choices for all bond applications, effectively reducing the initial capital strain on their projects.
• Best Price Guarantee – CG Bonds operate a Best Price Guarantee Policy, helping our clients achieve the best possible terms.

For further details on Section 106 Bond Agreements, don’t hesitate to contact our client account team, who are equipped with a wealth of specialist knowledge. They are well-positioned to offer guidance and support tailored to your specific bond requirements.