Risk Purchase

    Clauses 14 ( C ) & 17 of the conditions of the contract contained in Schedule `B’ provide for effecting purchase at the risk and cost of the contractor in the event of their failure in making supply of the stores within the stipulated delivery period/extended delivery period. The risk purchase can be made within 6 months from the expiry of such delivery period. The stores to be purchased at the cost of the contractor in such cases are ordinarily of the same or similar specification, but need not be of the particular make mentioned in the original supply order.

    On receipt of a report from the Indenting officer about the failure of the contractor to supply of material on Schedule as per terms of the contract , a notice is served upon the contractor by this Directorate in terms of clause 14 (C ) of the conditions of contract to complete the supply within 15 days failing which the supplies shall be arranged at their risk and cost. It is only when the notice is not complied with that the proceedings of risk purchase are started by calling short-term quotations. It is, therefore, desirable that the contractor should make efforts to complete the supply within the notice period and in case of any genuine difficulty, which is beyond their control, they should immediately contract the Indenting officer/consignee and make request for extension of delivery period .If the request is found to be genuine ,the indenting officer normally accepts it and recommends the case for extension to this Directorate. The contractor is advised to contract this Directorate and explain the position personally at the earliest opportunity and report for extension of delivery period etc. instead of entering into lengthy correspondence. Some contractors try to gain more time on one pretext or the other with a view to exhausting the limitation period of 6 months which is certainly not a business like conduct and is viewed seriously.

    The excess amount spent by the Government in arraigning the supplies of stores at the risk and cost of the contractor will be recovered from the pending bills, earnest money and security of the defaulting contractor and in case the amount is not fully recovered, the case is referred to Arbitrator, It is, therefore, in the interest of the contractors not to put themselves in such predicament.