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 can I get a quote?

Typically, people will approach a bond specialist, like an insurance broker, who will request information as part of the application. For example, a specialist will ask for the latest unabbreviated accounts, up-to-date management accounts, current forecasts for the financial year, current workload schedule and a questionnaire completed by your bank. If the Beneficiary requires specific […]

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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
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 […]

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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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