In the construction industry, acquiring a project and securing a contract for it is a long and tedious process. The process is also highly competitive because you have to compete with other contractors through bidding. It is also important to show proof of guarantee to the project owner that you can comply with the bid contract and also show guarantee that you can accomplish the job as laid out in the contract. Because of these, you need to obtain bid bond and performance bond guarantees which are proof that you mean business and you are capable of following the contract to the letter.