Sir, I WAS surprised to read that subcontractors cannot obtain bonds from insurance companies as an alternative to retention monies being witheld (Construction News, August 3).
The members of the Association of British Insurers, who constitute the ABI Surety Bond committee, have been issuing retention bonds for many years. Insurers will issue such bonds, provided the quantum of the financial exposure for an individual subcontractor is realistic, so each company needs to be assessed. This is neither onerous nor expensive.
I agree with Rod Pettigrew that there is a great opportunity. Let us hope the construction organisations and the ABI can progress this.
HT Brown, Chairman, ABI Surety Bond Committee