Commencing and completing your residential development: Lodgement of security.
On the basis that the public purse may be required to fund completion of publicly accessible services of general public utility in residential developments (of two or more houses), where the developer may have failed to, a local authority is empowered to attach planning conditions requiring the lodgement of security (which may be a performance bond or cash deposit) to induce the provision of such services. The developer is required to maintain the security in place until the publicly accessible services in the residential development are either taken in charge or, if not to be taken in charge, until said services are certified as being completed to a “taking in charge” standard, as outlined in the Councils Taking in Charge Policy.
It is necessary that developers obtaining revised or extended permissions for a site provide a security that incorporates said permissions.
The provision of a bond is a sanction available to local authorities, which, in addition to enforcement of planning conditions, can safeguard the delivery of publicly accessible services of general utility.
The submission of security is required when the development is commenced and must be in a form acceptable to the local authority. To secure the provision of said security the Council prevents access by non-compliant developers to water connections, issues enforcement proceedings as required and/or prevents the closure of property sales until such security is provided.
In the event that the developer defaults upon his obligation to provide publicly accessible services to the Councils taking in charge standard, in certain circumstances, the Council may claim an amount of the security lodged, as required, in completing said services. The Council however can only expend the security it has claimed after the publicly accessible services of general utility have been taken in charge.
The release of the security, lodged with the Council by the developer, will only follow submission of the required taking in charge package and inspections carried out by Council staff to ensure that the public services in the development have been satisfactorily completed in accordance with the planning permission.
The value of security required may be updated to the appropriate rate at the date of commencement of development in accordance with changes in the Tender Price Index, in order to reflect the current costs of completing works where required. Please see details of charges in respect of cash security or a bond below which are applied in conditions of planning permissions for residential development;
No of Dwellings
CASH (Per Dwelling)
BOND (Per dwelling)
CASH (PER apartment)
BOND (PER apartment)
A sample bond agreement is contained in the documents section below along with the Councils current Taking in Charge Policy adopted by the Councils Planning and Economic Development Strategic Policy Committee in 2010.