Section 5106 Of Chapter 5. Relief Of Bidders From California Public Contract Code >> Division 2. >> Part 1. >> Chapter 5.

. 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. 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.