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Penalty. - Failure without good cause by the contractor or subcontractor to comply with the requirements of Sections 1, 4 and 5 of this Act shall be penalized by a fine of Twenty thousand pesos (P20,000) for the first offense; suspension for one (1) year from participating in public works bidding for the second offense; and perpetual disqualification from participating in public works bidding for the third offense. The penalty clause as provided for in this Act shall be included in all contracts to be entered into by and between the national, provincial, city and municipal governments and the contractor upon approval of this Act.
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