Current report no 55 / 2019

Execution of construction works and implementation of a working design on the Vistula Bridge – Czechowice-Dziedzice – Zabrzeg section – the bid of Budimex Budownictwo Sp. z o.o. evaluated the highest

The Management Board of Budimex S.A. announces that on 14.08.2019 PKP Polskie Linie Kolejowe S.A. informed the Company that the bid of Budimex Budownictwo Sp. z o.o. (a wholly-owned subsidiary of Budimex S.A.) had been evaluated the highest in the tender for the Execution of construction works and implementation of a working design and execution of construction works for the development of railway traffic control equipment and railway telecommunication network equipment , together with the provision of post-guarantee services for this equipment on the Vistula Bridge – Czechowice-Dziedzice – Zabrzeg junction post.

The aforementioned information does not mean selecting the bid of Budimex Budownictwo Sp. z o.o. as the most advantageous one, because the procedure concerning the bid evaluation has not yet been finally completed.

Bid value: PLN 1 399 752 354.70 net (Accepted Contract Amount ) including:

Contingency: PLN 111 195 161.05 (Contingency is used to cover payments for services or Works that are not specified in the bill of quantities)

Works commencement date: the day following the date of signing the Contract

Completion date: 207 weeks from the works commencement date

Guarantee period: 72 months

Warranty period: 72 months

Advance payment: 10% of the Accepted Contract Amount for the basic scope

Payment terms: 30 days from the day of delivery of a correct VAT invoice to the Ordering Party by the Contractor

Bank performance bond: 10% of the total gross value

Maximum amount of contractual penalty paid by the Contractor: The total amount of penalties shall not exceed 20% of the Accepted Contract Amount less the value of Contingency, however, if a contractual penalty is charged for withdrawal from the contract due to the Contractor’s fault, the total amount of penalties shall not exceed 30% of the Accepted Contract Amount less the value of Contingency.

Contractual penalties do not prejudice the Ordering Party’s right to seek damages exceeding the stipulated contractual penalties in accordance with general principles, including those resulting from the loss of EU funding, if the loss of funding occurred for reasons attributable to the Contractor.

Other terms and conditions of the contract do not differ from the market standards.

The bid value exceeds the threshold of PLN 147,743 thousand net.