Core TSIs : Contracts : Working with Contracts : Using contract options - renew, shorten, terminate : Examples of using renewal options : Renewal options - example 2
Renewal options - example 2
Case: contract with an end date (specified duration). The duration of the contract is five years, with two renewal options for 5 years. Subsequently, it becomes a contract of indefinite duration.
Diagram of a contract with an end date and a renewal for an indefinite periodDiagram of a contract with an end date and a renewal for an indefinite period
The following settings are used:
Contract
Field
Field value
Start date contract
1/1/2011
Duration
5 years
Notice term
3 months
Proposed expiration date
31/12/2015
Renewal option 1
Field
Field value
Description
Renewal 5 years
Priority
1
Renewal term
5 years
Repeat renewal
No
Status
Active
Renewal option 2
Field
Field value
Description
Renewal 5 years
Priority
2
Renewal term
5 years
Repeat renewal
No
Status
Active
Renewal option 3
Field
Field value
Description
Renewal for indefinite period of time
Priority
3
Renewal term
-
Repeat renewal
No
Status
Active
* 
For information on applying the option and viewing the results on the Contracts selection level, see Renewal options - example 1.