There are a few key differences between a bid bond and a performance bond.
The bid bond is required at the tender stage and is used to secure your bid. A performance bond is required after contract award and is used to guarantee the performance of the contract.
The cost of bid bonds are covered by an annual administration fee and does not depend on the number issued whereas there is a cost for each and every performance bond issued.
A bid bond can get called into question if you are awarded a contract and you choose not to enter into it, and a performance bond is used by a project owner if there is a default on a contract where a performance bond was provided.