Government Procurement Law
Section 69. Failure to Enter into Contract and Past Performance Security. - If for justifiable causes, the bidder with the LCRB, HRRB, or MEARB, as the case may be, fails, refuses, or is otherwise unable to enter into contract with the Procuring Entity, or if the bidder fails to post the required performance security within period stipulated in the Bidding Documents, the BAC shall disqualify the said bidder and shall undertake post-qualification for the next-ranked LCB, HRB, or MEAB. This procedure shall be repeated until an award is made. However, if no award is possible, the contract shall be subjected to a new bidding.
In case of failure to post the required performance security, the bid security shall be forfeited without prejudice to the imposition of sanctions prescribed under Article XXI.