BUSINESS TIP ––––––––––––––––––––––––––––––––––––––––––––––––––––––– and suppliers hired by the princi- pal; the surety is also responsible for defending and indemnifying the project owner against claims of nonpayment and assumes the responsibility for paying these claimants. • Bid bonds which provide protec- tion to the obligee (again, generally the owner) if a winning bidder (the contractor) fails to follow through with executing the contract. Insurance vs. bonds Although surety bonds and insur- ance are both risk-management tools, surety bonds are not a form of construction insurance and are quite different in many important respects. An insurance policy is a two-party agreement where the insurer generally expects losses from covered events (and generally the insurer does not seek reimburse- ment from the insured). A surety, on the other hand, does not neces- sarily expect losses, will take steps to prequalify principals before they can be bonded, and will gener- ally seek reimbursement from the principal. Likewise, where an insur- ance policy’s coverage comes into play when unexpected or fortuitous events occur, a surety bond is trig- gered only upon default by the prin- cipal regardless of the reason for the default (with certain exceptions). In a way, a surety bond is more like a tripartite credit agreement with the surety guaranteeing financial sup- port on behalf of the principal. Mapeguard® WP 200 is a thin and flexible, two-sided, nonwoven, poly- propylene fabric, used for both water- proofing and crack isolation under ceramic, porcelain and natural-stone tiles. The laminated fabric webbing is uniquely designed to ensure solid adhesion of mortar to the membrane, the substrate and the finished floor covering. Mapeguard WP 200’s low perm rating performance is ideal for vapor protection in showers and wet areas. Mapeguard WP 200 provides reli- able waterproofing in damp areas such as bathrooms, kitchens, laundry rooms and steam rooms. Additionally, its low perm rating performance is ideal for vapor protection in showers and wet areas. Mapeguard WP 200 is part of an advanced four-part system that includes sealing tape, collars, and inside/outside corners to ensure a smooth installation. www.mapei.com. 34 TileLetter | December 2018