Railway Accounts Department Examinations

Showing posts with label Risk purchase. Show all posts
Showing posts with label Risk purchase. Show all posts

Saturday, April 28, 2018

Risk Purchase

Risk Purchase
·         is fresh purchase made by the Railways ordered at the risk and cost of the defaulting firm , by cancelling the original purchase order under the conditions of the Contract.

·         It happens, when a firm has failed to make supply against P.O/agreement wholly or in part within the Delivery period including extension granted if any.,   or

·         When supply made has been rejected and the firm has failed to replace the same in spite of additional time having been given.

·         Under the above circumstances, the contractor/supplier shall be liable for any loss which the railway may sustain provided:

·         Such a risk purchase is covered by the Agreement.,

·         Risk purchase is made within 6 months from the date of failure or cancellation of the contract owing to repudiation of the contract before the expiry of delivery period incl: extension period if any.

·         Important points to be observed, while making risk purchase are:

·         Risk purchase should be ordered in the same manner as for the original purchase. That is description, inspection method,  system of tender should be similar to the original purchase.

·         No offer with any unusual condition at variance with the original purchase should be accepted.

·         The defaulting firm should also be invited to tender against the Risk tender even though not obligatory.

·         If acceptable, the defaulting firm’s offer, ensure that the same may be accepted only after paying the security deposit, irrespective of the fact, that the said firm is exempted from depositing security money otherwise.

·         The original contractor becomes liable for to the difference between the higher price incurred and the contracted price.

·         For this purpose, MAR account to be operated for watching the realization of the above said difference amount.