Many construction projects have surety bonds. A performance bond, also known as a contract bond, is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor. A payment bond is a surety bond posted by a contractor to guarantee that its subcontractors and material suppliers on the project will be paid. Bond and suretyship litigation involves issues of when, and whether, the company issuing a bond is responsible and the contractor’s responsibility to repay the bonding company.