Government Procurement Law
Section 68. Performance Security. - Prior to the signing of the contract, the winning bidder shall, as a measure of guarantee for the faithful performance of and compliance with its obligations under the contract prepared in accordance with the Bidding Documents, be required to post a performance security in such form and amount as may be specified by the GPPB: Provided, That sectors enumerated under Section 76 of this Act may be allowed to post other forms such as performance securing declaration.
The IC shall identify the surety companies that may be tapped to issue and/or performance bonds. The list of surety companies identified by the IC shall include only those whose surety business is ready to provide callable-on-demand surety contracts, where the Procuring Entity can claim outright on the surety contract and receive the proceeds thereof upon default of the bidder. The performance security posted by the winning bidder must remain effective until final acceptance by the Procuring Entity.