As experienced property developers and contractors across Ireland will tell you, the journey from obtaining planning permission to “taking in charge” is rarely straightforward. In this process, one document frequently emerges as the critical bridge between paper plans and site commencement: the Development Bond, also known as an Infrastructure Bond.
Here are some of the key triggers that signal it’s time to secure your Development Bond.
Receiving Your Planning Permission
The most immediate and critical trigger for needing a Development Bond is the grant of planning permission from your local authority (e.g., Dublin City Council, Cork County Council). Once granted, the permission will contain specific conditions you must meet before you can commence work. Among these conditions, you will almost certainly find a requirement to provide security, either a cash deposit or a surety bond, to guarantee the satisfactory completion of the development’s public infrastructure.
The local authority requires this bond to help protect the future residents and the public. It is a financial safeguard, ensuring that funds are available to finish essential works if you, the developer, fail to complete them to the council’s “taken in charge standard”. This standard applies to items like roads and footpaths, surface water drainage and sewage systems, public lighting, and public open spaces and amenities. If you cannot fulfil these obligations, the Council can “call” the bond, using the guaranteed funds to complete the infrastructure itself.
For us, this bond is highly recommended as the first step you must take after planning approval before breaking ground.
Don’t let a bond condition delay your start date. Get in touch.
Opting to Save Working Capital
The local authority typically gives you two options for providing security for the completion of infrastructure: lodging a large cash deposit or presenting a Development Surety Bond. This is where the financial strategy of your project must kick in, and it’s one of the biggest reasons our clients choose a bond over cash.
If you choose a Cash Deposit, you must tie up a substantial sum of money (often 100% of the estimated infrastructure cost, which can be millions of pounds) with the council for the entire duration of the build, potentially for several years. This capital remains locked away and illiquid until the council formally “takes in charge” of the infrastructure.
You should consider getting a bond if: you want to maintain a healthier cash flow throughout the construction phase, your project funding is sensitive to initial capital outlay, or you need to maximise liquidity for investment in multiple projects simultaneously. We help our clients avoid the trap of tying up precious capital that could be delivering profit elsewhere.
Starting multi-phase developments
If you are commencing a large development, such as a multi-phase housing estate or a phased mixed-use scheme, you should definitely consider a Development Bond. Local authorities will often allow developers to provide the security in phases. This means that as you complete and get approval for the infrastructure in Phase 1, that portion of the bond (or cash) can be released or reduced, allowing you to move the security (or capital) to cover the requirements of Phase 2.
A surety bond offers greater flexibility in this phasing process than managing complex cash deposits, which can be administratively slow to release. We structure your bond to align perfectly with your project timeline, allowing for partial releases that support continuous development and financial agility.
Get in touch for help
Development Bonds are critical, but they don’t have to be a burden. They represent our commitment to the local authorities and the public that the job will be done right, while simultaneously being an effective tool for capital management. If your project involves the construction of new roads, sewers, or public amenities that will be “taken in charge” by a local authority, it is time to secure a Development Bond.
We have the knowledge to navigate the complex Irish requirements, helping to keep your development compliant and your cash flow healthy.
Don’t delay your project, secure your Development Bond! Contact us for a quick quote.
