Option period

Extra time a buyer may add to a contract after the first term, at its choice, such as “two years plus two one-year options”. Options make a contract worth more than its first term.

Also called: Option year, Extension option

Related terms

Estimated contract value

The buyer’s estimate of what the whole contract will cost, including option years. It decides which rules and thresholds apply, and hints at the budget.

Re-tender

When an existing contract ends and the buyer runs a new competition for the same work. Re-tenders are predictable from award notices, so they are the easiest tenders to prepare for.