If the public entity deems it is for its best interest, it may, on refusal or failure of the successful bidder to execute the contract, award it to the second lowest bidder.

If the second lowest bidder fails or refuses to execute the contract, the public entity may likewise award it to the third lowest bidder.

Terms Used In California Public Contract Code 5106

  • Contract: A legal written agreement that becomes binding when signed.
  • Public entity: as used in this part , means the state, county, city, city and county, district, public authority, public agency, municipal corporation, or any other political subdivision or public corporation in the state. See California Public Contract Code 1100

On the failure or refusal of the second or third lowest bidder to whom a contract is so awarded to execute it, his or her bidder’s security shall be likewise forfeited.

(Added by Stats. 1982, Ch. 435, Sec. 2.)

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