These Contract Surety bonds are provided by the contractor to the project's owner after the project has been awarded to the contractor. These bonds provide protections to the project's owner and to the contractor's creditors regarding the ability of the contractor to perform the project and to pay its project costs.  The Performance Bond is normally issued in an amount equal to the project's price, and this bond provides the project's owner with remedies in the event that the contractor would default on its performance of the project.  The Payment Bond, sometimes called a Labor and Material Bond, is also normally issued in an amount equal to the project's price, and this bond provides the contractor's creditors with possible remedies due to the contractor's failure to pay its costs associated with the project.  Normally, the Performance Bond and the Payment Bond are issued togetheras a set, with one premium charge made for this set of bonds.