Aktuální report č. 66 / 2010

Construction of the S17 express road, section Kurów - Lublin - Piaski. A new contract for Budimex SA

The Management Board of Budimex S.A. hereby reports that on 9th September 2010 it received from the Lublin-based division of the General Directorate for National Roads and Motorways information about the selection of the offer by the consortium of Budimex S.A. (leader) and Ferrovial Agroman S.A. as the most favourable offer in the proceedings concerning the public procurement procedure carried out by a limited tender procedure known as: "Construction of the S17 express road, section Kurów - Lublin - Piaski". Task no. 5: Expansion of national road no. 17 (12) at the section of Lublin (Witosa junction) - Piaski (the beginning of the ring-road) from km 616 + 616 to km 630 + 400. Task no. 5a: Construction of G-rated ul. "Projektowana" (currently Al. NSZZ "Solidarność"), section from Al. Witosa (together with the junction) in Lublin to Al. Lotników Polskich in Świdnik.

• Contract value: PLN 327,148,469.60 net
• Commencement date: no later than 30 days from the date of concluding the contract
• Deadline: 24 months from the date of concluding the contract
• Guarantee period: 60 months from the date of the last Take-over Certificate
• Financial conditions:
  • Advance payment – 10% of the contract value
  • Payment: 30 days from the date of submitting the invoice to the Ordering Party
  • Bank guarantee of successful execution – 5% of the Approved Contractual Amount
  • Contractual penalties paid by the Contractor:
  • For exceeding the deadline for the completion of works - 0.01% of the Approved Contractual Amount per each day of delay;
  • For failure to perform the Required Minimum Performance on time – 0.01% of the Approved Contractual Amount per each day of delay;
  • For withdrawal from the Contract for reasons attributable to the Contractor – 10% of the Approved Contractual Amount;
  • For exceeding the deadline for the submission of: the schedule, the report, detailed calculations of unit prices - PLN 5,000 per each day of delay;
  • For exceeding the deadline to remove defects and to perform minor overdue works specified in the Take-over Certificate or for failure to remove defects identified during the warranty period by the date specified by the Engineer/
    the Ordering Party - 0.01% of the Approved Contractual Amount per each day of delay;
  • For failure to clear up the building site - 0.01% of the Approved Contractual Amount per each day of delay.
• Penalties paid by the Contracting Authority:
  • The Contracting Authority will pay a contractual penalty of 10% of the Approved Contractual Amount to the Contractor for withdrawal from the contract for reasons attributable to the Contractor.
  • The Parties reserve the right to supplementary compensation, which carries the amount of contractual penalties to the amount of damage actually suffered.

The contract value exceeds 10% of the equity of Budimex SA.