What are the basics of environmental bonds?

Understand the importance of environmental bonds.

Environmental bonds involve a contract with hazardous environmental materials used

When it comes to bidding bonds, supply bonds, maintenance bonds, and payment and performance bonds, the term environmental bond is used.

The criteria used for writing environmental bonds includes:

  • Bid amount
  • Personal and corporate credit history
  • Personal and corporate net worth
  • Personal and corporate assets
  • Total work on hand
  • Previous experience
  • Scope of work

Environmental surety bonds have many types, including EPA closure bonds, post-closure bonds, and collection bonds. These bonds cover bases including solid waste landfill, well drilling operations, commercial and residential waste collection, disposal, and transportation means.

Who needs an environmental bond?

The the basics of environmental bonds are important for any business.

Environmental bonds are best used for small to large construction firms that work with dirt projects containing components relating to the environment. They are especially needed if their surety is not interested in providing the said bond.

Other components needing environmental bonds include traditional contractors working in construction landfills, environmental remediation contractors, environmental consultants, manufacturing companies who create by-products that end in residual landfills, coal-burning by-product storage utilities, and principals with environmental guarantees.

What construction activities do environmental bonds cover?

When it comes to environmental surety bonds, they include bid bonds, performance bonds, and payment bonds when working on contaminated property. Similar construction bonds are required for any form of environmental working including landfill construction, wetland mitigation, mining, and any other industries that may impact the environment.

Examples of activities environmental bonds cover include:

  • Asbestos abatement/removal
  • Brownfield remediation
  • Demolition/disposal of contaminated facilities
  • Dewatering system installation
  • Environmental excavation
  • Erosion control
  • Landfill capping, liners, and closures
  • Mining rehabilitation
  • Sediment control
  • Soil stabilization
  • Underground tank removal