Current report no 39 / 2013

Extension of the ‘Gala Pomorska’ Shopping Center in Bydgoszcz

The Management Board of Budimex S.A. announces that two contracts were concluded with Pomorska Investments Sp. z o.o. with its registered office in Warsaw on 11 June 2013.

The first contract concerns the reconstruction of the northwestern entrance and delivery area 1 at 'Galeria Pomorska' in Bydgoszcz.

• Net contract value: PLN 3,998,162.00

The second contract concerns an extension to the 'Galeria Pomorska' shopping centre in Bydgoszcz, involving: external works, construction of a new car park with a new road layout, and the reconstruction of the retail space. It is a conditional contract. The contract enters into force upon fulfillment of the following conditions: the investor obtains a building permit, Carrefour agrees to the works and the investor signs a loan agreement to finance the project. If by 31.10.2013 the above conditions are not met, then the investor and the contractor will commence negotiations for the contract price and the timetable. If the parties fail to reach an agreement between 31.10.2013 and 31.12.2013, the parties shall be entitled to terminate the contract as of 28.02.2014. Neither party will file claims for costs incurred in connection with a contract that has not entered into force.

• Net contract value: PLN 55,494,164.35
• Commencement date: 20.09.2013
• Deadline: 02.04.2015
• Warranty period: 10 years for facade, roofing, insulation, building construction, exterior windows, skylights, exterior joinery, and exterior metal parts; 5 years for coating of steel structure, internal joinery, floors, wall plaster, ceilings, road construction, and flooring; 3 years for other items. Materials and equipment according to the manufacturer's warranty, but not less than 3 years
• Financial terms and conditions:
  • Term of payment: 21 days from the delivery of the invoice to the Contracting Authority
  • Performance bond: 10% of the net contract value
• Maximum penalties: 10% of the net contract value
• The Contracting Authority reserves the right to supplementary compensation in excess of the amount of contractual penalties, to the amount of damage actually suffered

Cumulative value of the contracts exceeds 10% of the equity of Budimex SA.