Managing General Agents
DRS Bond MGA is dedicated to providing capacity to the UK Surety Bond Market, the leading alternative to Bank Guarantees. Our start point is to provide brokers with terms on an uncollateralised basis to enable their clients to retain their working capital in their business. Our other raison d’etre is to support brokers’ clients with regulatory discipline.
DRS specialises in surety bonds, including Performance Bonds, Retention Bonds and Advance Payment Bonds, predominantly for the Construction and Property sectors.
DRS was introduced to the leadership team at the MGAA by a trusted adviser who recognises the absolute value to DRS of partnering with the MGAA to facilitate the growth and evolution of our business.
DRS is currently seeking capacity to be able to support a myriad of Bonding instruments including:
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Performance Bonds
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Retention Bonds
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Advance Payment Bonds
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Highways Bonds (Public Works including roads and sewers)
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Customs Bonds
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Rural Payment Agency Bonds
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Environment Agency Bonds
If you’re a capacity provider looking for a route to the UK Surety Bond Market, via a partnership with an experienced and reliable managing general agent, our Group Chief Executive Officer, Chris Davies (chris.davies@drsbonds.co.uk) would love to hear from you.
Performance bonds are a contract guarantee bond in which the Surety undertakes to pay damages to a third party if there is a contractual breach by the contractor. This is typically for 10% of the contract sum, to cover losses incurred by the employer following a breach of contract, including insolvency of the contractor.
Retention bonds ensure that the contractor receives the full amount of their agreed payment certificates, without deduction of retention. This can apply from the beginning of the works period through to the expiry of the defects period. In short, a retention bond replaces retention monies.
Advance payment bonds protect the employer by guaranteeing upfront payments for goods or services.
Highways bonds, also known as an infrastructure bond, is used to guarantee to local authorities or utility companies that work carried out by contractors will be delivered and completed to an adoptable standard. It covers the financial area of the Highways Act 1980.
NHBC bonds are a financial guarantee issued to the NHBC, against the failure of the contractor/developer to maintain properties within the 10-year post-construction period covered by the NHBC building warranty. The NHBC sometimes requires a guarantee from a bank. We can supply this type of bond, which is usually required for five and a half years.
Bid bonds are often submitted with tenders to demonstrate that the tendering party can commence the contract if it is awarded to them and that it can procure any other bonds required.
Duty deferment bonds guarantee payment of a contractor’s deferred VAT or duty liabilities to Her Majesty’s Revenue and Customs (“HMRC’).
This is a mandatory requirement of the RPA, related to the importation of foodstuffs from outside the European Union. RPA bonds guarantee that the importer has the means to conclude the relevant financial transactions and acts as a penalty if the importer cannot conclude the transaction.
WRAP bonds guarantees waste is disposed of safely and responsibly.
Restoration bonds guarantee to the employer that land will be returned to its original condition upon the expiry of the relevant operating license. Returning land to its original condition once permissions have expired is mandatory, for example, in quarries.
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