Section 51, The Public Procurement Act, 2004

(1) The bidding documents may require bidders to submita bid security, which shall be applied to all bidders, and set in accordance with the regulations. (2) Forfeiture of a bid security may be imposed only in the event of – (a) a modification or withdrawal of a bid after the deadline for submission of bids and during its period of validity; (b) refusal by a bidder to accept a correction of an arithmetical error appearing on the face of the bid; (c) failure by the successful bidder to sign a contract in accordance with the terms set forth in the bidding documents; or Submission of bids. Bid security. 46 47 (d) failure by the successful bidder to provide a security for the performance of the contract if required to do so by the bidding documents.