Aktuální report č. 66 / 2012

Construction of the Meeting Centre of Cultures in Lublin - a new contract for Budimex SA

The Management Board of Budimex S.A. announces that on 15 October 2012 the consortium of Budimex S.A. (leader) and Ferrovial Agroman S.A. (partner) signed a contract with the Lubelskie Voivodeship and the Municipality of Lublin for construction works consisting in carrying out two separate investment tasks: “Construction of the Meeting Centre of Cultures in Lublin” and “Modernisation of the Music Theatre in Lublin and the H. Wieniawski Concert Hall in Lublin", as well as the production of design documentation and carrying out of construction works for the “Construction of the Theatre Square in Lublin” investment project.

• Contract value: PLN 163,694,718.32 net
• Commencement date: once the construction site has been handed over
• Deadline: 30 June 2015
• Guarantee period: 60 months
• Warranty period: 36 months
• Financial terms and conditions:
  • Payment: 30 days from the date of delivering the invoice to the Contracting Authority
  • Performance bank guarantee: 5% of the gross contract value
• Penalties paid by the Contractor:
  • for contract rescission or termination for reasons attributable to the Contractor – liquidated damages in the amount of 10% of the gross remuneration
  • for defects to the object of the handing over procedure that cannot be removed and render the use of the building impossible – liquidated damages in the amount of 20% of the gross remuneration for the scope of works (sectors) to which these defects relate
  • for each day of delay in carrying out the object of the contract – 0.001% of the gross remuneration
  • for each day of delay in carrying out/producing any of the stages/elements specified in the material and financial schedule, versus the deadlines specified in this schedule – 0.001% of the gross remuneration for this stage/element
  • for each confirmed day of absence of a competent member of the managing personnel (as specified in the contract), in particular the construction site manager – 0.001% of the gross remuneration
  • for exceeding the deadline for handing over design documentation – 0.001% of the gross remuneration for producing design documentation
• If the value of the damage exceeds the contractual penalties, the Contracting Authority shall have the right to claim compensation on general terms

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