How long does a bond last?

The duration of a bond is agreed between Beneficiary and Contractor prior to the bond being issued. Different bonds are usually in place for different periods.

A performance bond will typically be in place for between 1 and 3 years. A retention bond will be in place for between 1 and 2 years. An advance payment bond will typically be in place for 6 months to 2 years. A section bond will normally be in place for 2 years. Bonds will very rarely be issued for periods over 5 years.

The expiry of a bond will typically be upon Practical Completion, 12 months after Practical Completion, Making good Defects, or a Fixed Expiry Date. The specific expiry provision will always be included within the bond wording and Kerry London advises negotiating expiry to be upon Practical Completion, or a Fixed Expiry Date.