Page Tags: FAQ

Managing and facilitating bonds | Kerry London Limited
Monday 27th November 2023
What information will my Surety Broker need?

Insolvency continues to dominate the news headlines, and the Building Cost Information Service (BCIS) data confirms this. Insolvencies rose 9.2% last year and 30.7% compared to 2019. As this rise continues, so does the demand for construction bonds, which are becoming a regular feature of the construction tender process. Kerry London’s Bonds team advises how […]

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Managing and facilitating bonds | Kerry London Limited
Monday 27th November 2023
How much does a bond cost?

The cost of a bond depends on the financial strength of the company applying for the bond. This is because security is provided to the surety via a counter-indemnity. The surety will analyse the financial information, and provide indicative terms, subject to the financial information meeting their underwriting criteria. Another factor that can affect the […]

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Managing and facilitating bonds | Kerry London Limited
Monday 27th November 2023
Can a bond be cancelled?

Unlike a general insurance product, a bond is a legal obligation that cannot be cancelled for any reason, other than its specified expiry provision having been achieved. This must be proven via the relevant certificate provided by the Beneficiary, or its representative, once the Contractor has fulfilled the contractual obligations. Bonds with a fixed expiry […]

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Managing and facilitating bonds | Kerry London Limited
Monday 27th November 2023
What form of wording is typically used in a bond?

There are three commonly used types of bond. Conditional requires that damages need to be established and ascertained by an appointed representative before any bond claim is paid. Adjudication is where an independent adjudicator is required to assess and determine the amount of the damages incurred by the Beneficiary. On-demand agrees that payment will be […]

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Monday 27th November 2023
Bonds FAQs

Questions and answers that relate to Surety Bonds, including what they are designed for, how they are calculated, and how much they cost. This information is provided as a guide only. If you have any questions or concerns, please call our expert Bonds team on 020 7623 4957. Why do I need a construction bond […]

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