Landfill, Restoration or Reinstatement Bond
What is a Landfill, Restoration or Reinstatement Bond?
A Landfill, Restoration or Reinstatement Bond is a type of surety bond designed to guarantee that a site is restored to its agreed condition once operations have ceased. These bonds are commonly required for landfills, quarries, mining sites, and other industrial or construction-related land uses where environmental disruption may occur.
The bond provides financial security to the local authority or environmental regulator, ensuring that if the operator fails to meet their obligations, the funds will be available to complete the necessary reinstatement or restoration work.
Key Features
01
Protects the local environment by ensuring proper site clean-up and restoration
02
Required by planning authorities or the Environment Agency as a condition of operation
03
Covers costs such as landscaping, replanting, re-contouring, waste removal or decontamination
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Backed by a surety provider, reducing the need to tie up cash as a deposit
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Supports compliance with planning permission, permit, or environmental conditions
What is a Bond?
Placing your first bond? Or just need a refresher? Read on for the what’s what of surety bonds.
Surety protects a business from financial losses, usually caused when one party fails to fulfil their end of a contract. By placing a surety (usually in the form of a bond), a business makes sure that all the project bills will be paid on time should there be any disruptions or problems fulfilling the contract.
Principal
The Principal is the business placing the bond. They are making a promise to the Obligee. To them, the Surety bond is like insurance.
Surety
The Surety promises to pay the Obligee should the Principal not do as they promise.
Obligee
The Obligee is the party that requests the bond from the Principal.
When might a Landfill, Restoration or Reinstatement be required?
These bonds are usually a precondition for gaining planning approval or an environmental permit. They may be required in cases such as:
- The operation of landfill sites, including hazardous waste or inert material disposal
- Quarrying, mining or excavation projects where the land must be restored post-extraction
- Construction on greenfield or environmentally sensitive sites, where reinstatement of the natural landscape is expected
- Any project where a local authority or the Environment Agency requires assurance that land will be returned to a safe and usable state
Can PS Surety help?
PS Surety is a dedicated surety bond brokerage and we would be delighted to assist any contractor with placing performance bonds. We are fully regulated by the FCA and we guarantee that we provide our clients with:
The best possible terms available in the market
An honest, open and joint approach to our client’s Surety needs
Detailed client dashboard providing information on every bond ever placed
Communication when bonds become overdue
A single touch point within our organisation for wording reviews, quotes and queries
Rapid responses
That sounds expensive!
Our service is completely free to contractors. We are paid a commission by the surety providers on each bond that we place with them on behalf of our clients, the details of which are fully disclosed in our client dashboard.
The surety providers are happy to pay our commission because we specialise in bringing them business which fits their ever changing underwriting criteria. We also deal with frequent queries, wording issues, bond drafting and general administration.
The price that you pay PS Surety for a bond is the same price that you would pay any Surety if going direct.
Frequently Asked Questions – Landfill, Restoration or Reinstatement Bond
What does a restoration bond cover?
It guarantees the cost of returning a site to its agreed post-use condition. This could include removing structures or equipment, replanting vegetation, re-contouring land, or remediating contamination.
Who requires this type of bond?
Typically, it’s requested by local councils, planning authorities, or the Environment Agency as part of planning or permit conditions for high-impact land use.
How is the bond value calculated?
The bond amount usually reflects the estimated cost of restoration or reinstatement, often based on an independently verified schedule of works. Regulators or planning authorities will typically approve the costings.
How much does it cost to place a bond?
The premium is a percentage of the bond value, typically between 1% and 5% annually, depending on the project size, risk level, and financial standing of the applicant.
Is this bond refundable?
The bond itself is not refundable, as it’s a financial guarantee rather than a deposit. However, once the restoration is completed and signed off, the bond can be cancelled and the premium payments will stop.
Can this be replaced with a cash deposit?
In some cases, yes. However a surety bond is generally preferred as it allows businesses to retain working capital and avoid tying up large sums of money with the authority.
How can PSS help?
We work with businesses and developers across the UK to structure restoration bonds that meet both regulatory needs and commercial goals. We’ll handle the paperwork, liaise with the surety market, and ensure your bond is in place quickly and cost-effectively.
Landfill, Restoration or Reinstatement Bond Made Simple.
We simplify placing bonds with a personalised service and the best price available in the market.