Common use of Risk Purchase Clause in Contracts

Risk Purchase. If successful tenderer fails to supply material within the stipulated delivery date or material supplied other than specification specified in our NIT, JMCH authority reserves the right to terminate contract for that item(s), forfeiture of security deposit and to procure same or equivalent material from alternative sources at the vendor's risk, responsibility and cost. Any extra cost incurred in the procurement of the material from alternative source will be recovered from the Security Deposit / Bank Guarantee and Pending Bills of the existing firm and if the value of the materials under risk purchase exceeds, the amount of Security Deposit and / or Bank Guarantee and Pending Bills, then same may be recovered if necessary by due legal process.