Difficulty in obtaining Performance Bonds concern developers

A recent article published by Construction Enquirer has highlighted concerns raised by developers wherein specialist insurers are “shying away from providing bonds to any but the strongest of contracting companies.”

Jonathan Wildgoose of Derbyshire-based Wildgoose Construction, said: “Our experience is now that these insurers are now very nervous to offer bonds to all but the strongest of contracting companies due to the significant claims they are currently dealing with and of course they are very worried about the effects that the anticipated coronavirus recession will have on the industry.” In addition, he also urged the Government to step in to underwrite project bonding requirements, by setting up an organisation similar to the export credit agency.

At London Belgravia Brokers, we understand that the current economic situation has many construction firms considering their risk management strategy. Construction projects involve high risks for all parties concerned and we understand that it can be catastrophic for all, if the project is not completed.

We work closely with construction contractors and property developers to arrange this alternative to bank facilities. We ensure those in our network are getting the best price and most appropriate bond facility for their project. Our team at LBB are regulated by the Financial Conduct Authority and have over 40 years’ experience in the UK property sector including development finance, insurance and asset management.

If you have a requirement for a performance bond on a current or forthcoming scheme, we are available to discuss your situation and facility requirements. We’re well placed to provide tailored quotes that ensure you are making an informed decision, with the most appropriate and competitive terms available from the bond market.

 

About London Belgravia Brokers

Construction disputes are expensive and time-consuming – We want to help keep both developers and contractors building. To ensure that you are protected or if you have been asked to put a bond in place, speak to our specialist team today

London Belgravia Brokers are experts in specialist risk insurance products for property developers, in addition to performance bonds we can also provide building warranty (Latent Defect Insurance) schemes and arrange debt facilities for current and forthcoming projects.

Our Team has in excess of 40 years’ experience in the sector Obtaining specialist property insurance and can be a difficult process with lots of form filling, additional questions from insurers and time spent chasing an actual quote.

We take away that pain by managing the process for our network and ensuring they receive the most appropriate cover that meets their requirement, coupled with the best commercial terms.

For more information, call us on 0203701 0422 or fill in our enquiry form online

 

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