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.