Railway Accounts Department Examinations

Showing posts with label option clause. Show all posts
Showing posts with label option clause. Show all posts

Wednesday, April 3, 2019

Option Clause in Stores Contracts

Option Clause in Stores Contracts

ü  Applicable for all tenders wherever specifically mentioned in the tender conditions.

ü  The purchaser (i.e., Railways) reserves the right to increase and/ or decrease the order quantity by a quantity not exceeding 30 % of the ordered quantity.  

ü  Example: As per contract, ordered quantity is 100 Nos.  Under this clause, Purchaser has right to increase up to 130 Nos or decrease of only 70 Nos depend on the requirements.

ü  Same price,  Same terms & conditions are applicable.

ü  During the currency of the contract including extension period, if any.

ü  Before resorting such increase/decrease, reasonable notice and time should be given to the contractor/supplier.

ü  Railway can resort to increase the quantity, though the contractor/supplier delivered the ordered quantity has been supplied in full before the last date of delivery.

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