You can apply to bond drinking or recycled water or wastewater infrastructure. This can allow early clearance of a land development before the works are completed.
If your request to bond is accepted, you still have to accept the conditions set by the Land Developer Agreement.
You require a
financial guarantee as security. This is an agreement between you and an approved financial institution. The institution must guarantee your duty to complete the works.
The guarantee must be unconditional.
The financial institution must have no
interest in the development.
To be acceptable, the
financial guarantee must:
- nominate SA Water as the 'favouree'
- quote the Land Developer Agreement number(s)
- be open-ended.
The bonding process
There are six steps in the bonding process.
- Request and confirm the bond amount with SA Water.
- Provide a financial guarantee or cash for the bond amount.
- Instruct the surveyor to lodge the final plan of division with the Development Assessment Commission.
- On completion of steps 1 to 3, and subject to work commencing on-site, SA Water will advise the Development Assessment Commission that SA Water's conditions have been met.
- As the project proceeds, we will consider requests to reduce the bond amount in line with the reducing value of outstanding works. The number of bond reductions is limited to two.
- When a Certificate of Practical Completion has been issued the bond will be reduced to the security sum (5% of the total value of the works). It will remain at this level for the 12 month defects liability period. Upon expiration of this period a Certificate of Final Completion will be issued. The
guarantee will then be returned to the financial institution for cancellation.
How to apply
To apply for a bond, email Major Land Developments.