Common use of Lack of Adequate Market Demand Clause in Contracts

Lack of Adequate Market Demand. If the Contractor determines that there is no market for a particular recyclable or that the market has become economically unfeasible, the Contractor shall immediately give written notice to the City. Said notice shall include information demonstrating the effort the Contractor has made to find market sources and the financial information justifying the conclusion that the market is economically unfeasible. Economic unfeasibility is defined as a market in which market value received for a material are less than zero (0). Upon receipt of said notice, the Contractor and the City shall have 30 days to attempt to find a feasible market. During this period, the Contractor shall continue to pick up the particular recyclable. If the Contractor or the City is not able to find a market within 30 days, the City has the option to: a) Require the Contractor to continue to collect the particular recyclable. In such case, the City would pay the Contractor, as additional compensation, the tipping fee at the Newport RDF plant or a mutually agreeable alternative site. The Contractor is required to keep accurate records of said fees and provide the City receipts of payment. b) Notify the Contractor to cease collection of the particular recyclable until a feasible market is located, either by the Contractor or by the City. The Contractor would then be responsible for the cost of printing and distributing educational materials explaining the market situation to residents.