This coverage is typically required by public authorities to guarantee the dismantling/decommissioning of a facility at the end of its lifecycle. It indemnifies the public authority against the contractor's failure to comply with the scheduled dismantling obligations. These are long-term guarantees, typically issued as bank bonds or via mutual guarantee societies, but can also be issued as renewable insurance surety bonds, usually structured on a fixed 5-year term basis.
Solutions for outstanding issues, resolution of open disputes, and the release of any retention and/or penalties.
