Aktuální report č. 6 / 2014

Development of voivodeship road no. 747: Iłża-Konopnica, for the section between Konopnica and Kamień - a new contract for Budimex Budownictwo Sp. z o.o.

The Management Board of Budimex SA announces that on 22 January 2014 Budimex Budownictwo Sp. z o.o. (a wholly-owned subsidiary of Budimex SA) signed a contract with the Voivodeship Roads Board in Lublin for the Development of voivodeship road no. 747: Iłża-Konopnica for the section between Konopnica and Kamień.

• Contract value: PLN 44,113,541.51 net
• Commencement date: 21 days from the date of concluding the contract
• Work completion date: 15.12.2014.
• Warranty period: 7 years from the date of final acceptance
• Financial terms and conditions:
  • Payment: 30 days after the Contracting Authority has received an invoice
  • Performance bond: 10% of the gross contract value
• Penalties paid by the Contractor:
  • 20% of the gross contractual remuneration for the Contractor withdrawing from the contract,
  • 20% of the gross contractual remuneration for the Contracting Authority withdrawing from the contract for reasons attributable to the Contractor,
  • 0.1% of the gross contractual remuneration for each day of delay in removing defects discovered during acceptance procedures or during the warranty period within a specified period of time,
  • 0.1% of the contractual remuneration for each case if the activities reserved for the Construction Site Manager will be performed by some other person than the person approved by the Contracting Authority,
  • 15% of the value of the contract between the Contractor and a Subcontractor for each case in the event where the construction work constituting the Subject of this contract is performed by an entity other than the Contractor or a Subcontractor not approved by the Ordering Party.
• Liquidated damages to be paid by the Contracting Authority:
  • 20% of the gross contract value upon withdrawal from the contract due to the Contracting Authority.
• The Contracting Authority is entitled to sum contractual penalties and charge the Contractor for their total amount.
• The Contracting Authority reserves the right to supplemental compensation which adapts the amount of contractual penalties to the amount of damage actually suffered and lost profits.

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