The presence of a Bid Bond is intended to provide the client, the project owner and in this case – the Obligee, with the assurance that the tenderer has the financial capabilities of accepting the contract for the price quoted in their bid. If the bond is partially or fully forfeited, the Principal (typically the contractor) and the surety are jointly liable for the bond, which includes any additional costs the client incurs in selecting and awarding another supplier. Often this is the difference between the lowest bid and the second-lowest bid.