41Contract with option to extend

41 Contract with option to extend If a council or local government subsidiary intends to enter into a contract for supplies that contains an option for either party to extend the contract, the calculation of the threshold amounts for quotations or tenders are calculated to assume the option is exercised. Example for regulation 41 A council intends to enter into a 1 month contract on 1 January 2022 to obtain roadwork services for $60 000 (exclusive of GST), with an option for the council to extend the contract for an additional 2 months at the same monthly rate. The relevant threshold amount for the financial year would be $180 000 and the council is required to call for tenders under regulation 36.