Retender Clause Samples
The Retender clause allows a party, typically the client or project owner, to initiate a new tendering process for goods, services, or works originally covered by an existing contract. This clause is often triggered if the current contractor fails to meet performance standards, deadlines, or other key obligations, or if the contract is terminated for specific reasons. By enabling the client to seek alternative suppliers or contractors through a formal bidding process, the Retender clause ensures continuity of service or project delivery and mitigates risks associated with contractor non-performance or contract disputes.
Retender. A clearing member representing a long that is assigned a Certificate may retender that Certificate. The following rules govern retender:
1. A Certificate may only be retendered twice. A long that has been assigned a Certificate which has been retendered twice must take delivery.
2. A Certificate that has been assigned to a Demand Notice may not be retendered.
3. A Certificate may not be retendered after the last Trading Days of the contract month.
4. A long assigned a Certificate must establish a short position in the delivery month and notify the Clearing House of retender by 3:00 p.m. on the Business Day following assignment.
5. The retendering long will be assessed a retender charge of $.01 per pound ($400 per contract). The retender charges accrue to the Certificate and are payable to the long exercising the Certificate or to the reclaiming short.