b'NEWS & UPDATESROOFSTAR SURETY BOND INSURANCE GUARANTEE No losses anticipated POLICY Losses possible but not3rd-party agreement Losses anticipated anticipated (Principal (contractor), 2-party agreement3rd-party agreement Surety & Obligee (owner)) (Insurer and Insured) (Owner and Guarantor) Premiumscharge for Premiums actuariallyGuarantee feesa functionservice rendered determined of contract value Recourse against theNo recourse againstPrincipal via indemnityinsured in the event Pays for repair or replacement in the event of a loss (leak)*agreement* of loss**The claim is paid without rights of *The surety pays the claim as per the*The claim is paid as per the recovery, except under special circumstances terms ofthe bond, but has the right topolicy without further recourse)claim those costs against the Principal)Surety BondingWhat it IsForconstructionprojects,suretybondingguaranteestheThus, the insurance industry employs underwriters, whose contractor will perform the contract and pay all trades andjob is to ensure insurance premiums provide a sufficient loss suppliersforworkdoneontheproject.Bondingistypi- pool to fund claims that are expected (think house fires or car cally specified at the head contract level from the Generalaccidents). The surety industry employs underwriters, whose Contractor, by the project owner. Large and complex projectsjob is in some ways more complex, as their objective is to can involve buildings, underground and surface infrastructureensure that there are no losses on bonded jobs. and, of course, the roofing.For large roofing/re-roofing contracts there may also be a bonding requirement for a Performance Bond and a Labour & Material Payment Bondin addition to a long-term roofing guarantee of the type provided by roofing contractors asso-ciations like the RCABC. In these situations, the bonding is not a replacement for the roofing guarantee. Some have asked if sureties can issue biannual renewable maintenance bonds to cover the roofing installation over a protracted period (10ZERO ODOURyearsormore).Whiletechnicallypossible,thesearerarely When coldissued. One reason: the surety reserves the right not to renewUp to 177C themaintenancebondifthecontractorscircumstances 75 % less fumes than regular roofing asphaltBy BITUMARBURPAK ZERO contains an odour suppressant change for the worsethis limits the value of this product for which combined with a lower temperature of most owners. A NEW ROOFING ASPHALT WITH A LOWERinstallation, minimizes asphalt odourEVT WHICH REDUCES FUMES AND ODOUR. Zero complaint on odour It is important to understand that while a surety and theComplaints are time consuming and reduceRCABC guarantee are complementary, a surety is not insur- productivity on job sitesance; there are distinct differences.40 %35 %% of fumes in the air 75 % Reduction30 %25 %20 %15 %10 %Regular BUR5 %ZERO0 %93 121 149 176 204 232* 260 288** 316CTemperature11155 St-Catherine Street East * Theidealviscositytemperatureistypicallylowerby23CforMontreal-East, QCH1B 0A4 BURPAKZEROwhencomparedwithregularroofingasphalt.Tel. : 514 645-4561 Therefore,thereisnoneedforthekettletemperaturetoexceed232CwhenusingBURPAKZERO.bitumar.com **MaximumtemperatureofakettleasperASTMD312.www.rcabc.org l31'