Construction Surety Bonds

Secure your project obligations and protect your working capital with our specialist surety bond facilities.

Understanding Surety in Construction

A surety bond isn’t a traditional insurance policy; it is a financial guarantee. In the construction industry, a bond acts as a three-way agreement between the contractor (who performs the work), the employer or developer (who requires the guarantee), and the surety provider (who financially backs the guarantee).

If a contractor fails to meet their contractual obligations—often due to insolvency or default—the surety steps in to compensate the employer, ensuring the project can stay on track. For contractors, utilising a surety bond rather than a bank guarantee is crucial, as it keeps your vital cash reserves and credit lines completely free for day-to-day business operations.

Our Surety Bond solutions

Checkmate offer a variety of Surety Bonds to fit your project’s needs:

Performance Bonds

Contract completion guarantees providing vital financial security to developers and employers if a contractor fails to fulfil their obligations.

What they are

A standard requirement on most commercial projects, these bonds typically guarantee a set percentage (often 10%) of the total contract value.

What they cover

They protect the employer against the financial fallout of a contractor defaulting or entering insolvency before practical completion.

The bond covers the additional costs required to hire a replacement contractor and finish the build.

Advance Payment Bonds

Upfront payment protection securing the cash advances made to contractors or suppliers before work physically begins on site.

What they are

A financial safety net often required when a contractor needs significant capital upfront to procure bespoke materials, manufacture off-site components, or mobilise a workforce.

What they cover

They ensure that if the contractor or supplier defaults or goes into administration before delivering the agreed materials or services, the employer can fully recover their initial upfront investment.

Road and Sewer Bonds

Statutory adoption guarantees satisfying the strict requirements of local highways authorities and water providers (such as Section 38, 104, and 278 agreements).

What they are

Mandatory bonds required by developers before undertaking infrastructure works that will eventually be adopted and maintained by a public body (like new housing estate roads, footpaths, or drainage systems).

What they cover

They guarantee the local authority or water board that the infrastructure will be built to their required adoptable standard. If the developer fails to complete the work, the bond provides the public body with the funds to finish the job themselves.

Speak to a Surety specialist

If you’re preparing to tender for a new contract – or have recently been asked to provide a guarantee – getting specialist advice early keeps your project moving and protects your cash flow.

We’ll help you structure a surety facility that satisfies your immediate contractual obligations and scales with your business as your pipeline grows.