Reinstatement Performance Bond

Reinstatement bonds are required in conjunction with the need to decommission a site and reinstate it back to how it was initially handed over.

They are requested by entities such as local councils, landowners, the Environmental Protection Agency and Local Government departments.

The logic behind this form of bond is that it will inevitably cost large sums to return the site back to its original state, once the operations has ceased by way of natural completion, contractually or punitively.

In essence, the bond promises that the Principal (The contractor or operator) will adequately restore the site to its former state prior to the works. This financially guarantees that the owner of the property (public or private) will not incur any costs which they would if the operator simply ceased trading.

Contractual liabilities which the bond guarantees are for:

  • Decommissioning costs
  • Reclamation costs
  • Environmental Liabilities are satisfied financially

Like all bonds, the Principal who is looking for the bond determines the rate they must pay the surety.

To find out more on this please read our article What are the determining factors for what pay for a bond?

What we need to get started

  • Completed Advance Application Bond Proposal Form.
  • Last two years consolidated audited accounts
  • Up-to-date management accounts
  • Copy of Bond Wording