Common use of CONTRACT OPTIONS Clause in Contracts

CONTRACT OPTIONS. a. The Authority retains the ability to utilise the Option Year (Year 4), subject to the Authority’s continued requirement for the Framework Contractors’ services under the Framework Agreement following completion of each Contract Year. The Framework Contractors hereby grant to the Authority irrevocable Options to proceed to future Contract Years at the firm prices stated in the Schedule of Requirements (Schedule 2). The Authority will not be obliged to take up the Option and if the Authority elects not to take up the Option, the Framework Agreement will be deemed to have expired at the end of Contract Year 3 if Contract Year 4 is not taken up. b. The Authority will notify the Framework Contractors of its intention to take up the Option for the next Contract Year no less than 3 months before the current expiry date of the Contract.