Aktuální report č. 75 / 2014

Continuation of the construction of the A4 motorway - a new contract for Budimex SA

The Management Board of Budimex SA announces that on 16 September, 2014 the consortium of Budimex SA (leader, 50% share) and Strabag Sp. z o.o. with its registered office in Pruszków (partner, 50% share), executed a contract with the General Directorate for National Roads and Motorways for "Continuation of the construction of the A4 motorway on the section from Rzeszów (Eastern Junction) to Jarosław (Wierzbna Junction), from km 581+263.44 to km 622+463.44, along with necessary technical infrastructure, structures and engineering facilities".

• Contract value: PLN 584,956,280.85 net
• Commencement date: the construction site shall be accessed within 14 days from the conclusion of the contract.
• Deadline: 14 months from the date of signing the contract Winter periods (i.e. between 15 December and 15 March) shall not be included in the completion deadline.
• Guarantee periods: 10 years for elements not listed in the detailed part of the guarantee, which defines the following: 5 years for the wearing course and other road surface layers, vertical signs, acoustic screens, prefabricated concrete and road engineering structures; 4 years for horizontal thick-layered signs; 3 years for greenery; and 1 year for horizontal thin-layered signs.
• Financial terms and conditions:
  • Advance payment: 5% to 10% of the approved gross contractual amount
  • Payment: 30 days after the Contracting Authority receives a VAT invoice.
  • Performance bond: 10% of the approved gross contractual amount.
• Maximum penalty amount: 20% of the approved gross contractual amount.
• The Contracting Authority has the right to claim supplementary damages, increasing the amount of liquidated damages to the amount of the actual damage which has been suffered or may have been suffered as a result of the Contractor's ill-performance of the contract.

The value of the contract exceeds 10% of the equity of Budimex S.A.