Developers of six city estates have bonds invoked

DEVELOPERS responsible for six Londonderry housing estates had surety bonds invoked over the past five years in last resort actions to make sure necessary road works were completed on the private schemes before they were adopted by Roads Service.

The last resort measure was used to ensure roads at Shepherd’s Glen, Summer Meadows, Pine Trees, Glenvale, Clarendon Manor and Upper Galliagh were up to scratch. Sixty developers province-wide had their bonds invoked.

Roads Minister Danny Kennedy revealed the amount of bonds invoked in Londonderry and throughout the province in response to an Assembly Question.

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Under current legislation Roads Service must give careful consideration to invoking a bond and generally view it as a last resort.

A road bond is a type of surety bond which guarantees to local authorities and highway agencies that roads, footpaths, street lighting and sewers will be provided to a standard which they can adopt.

Mr Kennedy advised: “My Department’s Roads Service has advised that, over the last five years, 60 developers have had their bond invoked in order to ensure that road works within private estates were completed.” A list of developments included the six listed above.

According to an Assembly research paper bonds are generally provided by a third party surety company in the form of an insurance bond but Roads Service also accepts cash deposits in lieu of a bond, e.g. if a developer has difficulty in securing a bond from a third party.

The value of the bond is determined by the relevant authority and based upon what costs they would incur if required to complete the works.

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