Aktuální report č. 78 / 2010

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

The Management Board of Budimex SA announces that on 12 November 2010 the consortium of Budimex SA (leader) and Ferrovial Agroman SA concluded a contract with the Lublin-based division of the General Directorate for National Roads and Motorways on "Construction of the S-17 express road, the 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 gross contractual amount
• Contractual penalties paid by the Contractor:
  • For exceeding the deadline for the completion of works - 0.01% of the gross approved contractual amount per each day of delay;
  • For failure to perform the Required Minimum Performance on time – 0.01% of the gross approved contractual amount per each day of delay;
  • For withdrawal from the Contract for reasons attributable to the Contractor – 10% of the gross 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 work 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 Contracting Authority – 0.01 % of the gross approved contractual amount per each day of delay;
  • For failure to clear up the construction site - 0.01% of the gross 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 gross 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 equal to the amount of damage actually suffered.

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