Aktuální report č. 71 / 2012

Construction of the Nowa Sól ring road - a new contract for Budimex Budownictwo Sp. z o.o.

The Management Board of Budimex S.A. announces that on 30 October 2012, Budimex Budownictwo Sp. z o.o. (a company 100% subordinate to Budimex S.A.) concluded a contract with the Voivodeship Road Authority in Zielona Góra for the “Construction of the Nowa Sól Ring Road – Stage I – Task Co-financed with the Resources of the Operational Programme for the Lubuskie Region for 2007-2012”.

• Net contract value: PLN 34,718,158.40
• Commencement date: 30 days from the date of concluding the contract
• Work completion date: 30.10.2013, including work related to the relocation of a DN 200 high-pressure gas pipeline with the deadline of 30.08.2013
• Guarantee period: 60 months
• Financial terms and conditions:
  • Payment: 30 days from the delivery of the invoice to the Contracting Authority
  • Performance bond: 5% of the gross contract value
• Penalties payable by the Contractor:
  • for delay in the performance of the contract – 0.2% of the gross contract value for each day of delay, counting from the day of contract execution
  • for delay in remedying defects identified in the course of the acceptance or revealed during the warranty and guarantee period – 0.2% of the gross contract value for each day of the delay, counting from the expiry of the deadline specified for remedying the defects
  • for withdrawal from the contract for reasons attributable to the Contractor – 10% of the gross contract value
• Penalties payable by the Contracting Authority:
  • for unjustified withdrawal from the contract – 10% of the gross contract value
• The Contracting Authority reserves the right to compensation which adapts the amount of contractual penalties to the amount of damage actually suffered and profits lost

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