Aktuální report č. 45 / 2014

Construction of Bydgoszcz Główna railway station - a new contract for Budimex SA

The Management Board of Budimex SA announces that on 28 May 2014 the consortium of Budimex SA (consortium leader with 90.11% shares) and Przedsiębiorstwo Wielobranżowe LECH Sp. z o.o. with its registered office in Bydgoszcz (consortium partner with 9.89% shares) signed a contract with Polskie Koleje Państwowe SA with its registered office in Warsaw for the execution of construction and installation works to perform the investment project – Construction of an integrated communication centre in Bydgoszcz – Stage 1 Bydgoszcz Główna Railway Centre.

• Contract value: PLN 133,993,299.35 net
• Commencement date: upon handing over the building site, which will take place within 3 days from the date of concluding the contract
• Deadline: 78 weeks from the commencement date
• Guarantee period: 60 months for construction works, 36 months for machinery and equipment and 36 months for interior furnishing.
• Financial terms and conditions:
  • Payment: 30 days
  • Performance bond: 10% of gross contract value
• Liquidated damages paid by the contractor:
  • for any delay in executing the subject of the contract – 0.3% of the gross contract price for each commenced day of delay,
  • for any delay in developing and launching a temporary railway station for the purpose of project execution within 4 weeks from the date of concluding the contract – 0.1% for each day of delay,
  • for any delay in timely removal of defects and flaws identified during the execution of the contract or during take-overs – 0.3% of the gross contract price for each day of delay starting from the deadline set for the removal of defects and flaws; however, not more than 15% of the gross contract price,
  • for terminating the contract by the Contracting Authority (termination of or withdrawal from the contract) on any grounds for reasons attributable to the Contractor – 20% of the gross contract price.
• Irrespective of contractual penalties under other titles, in the case of a failure to meet deadlines of particular stages of works for reasons attributable to the Contractor resulting in the necessity to introduce unplanned railway track closures, the Contractor undertakes to refund to PKP PLK S.A. costs resulting from:
  • compensations paid to passengers pursuant to Regulation of the European Parliament and of the Council no. 1371/2007 on rail passengers' rights and obligations, effective according to the Regulation of the Minister of Infrastructure dated 25 May 2011 /Journal of Laws no. 117 item 683/,
  • failing to comply with railway track parameters resulting in extending the running time of trains,
  • costs of printing and distributing timetables in poster form and information leaflets for passengers,
  • costs incurred by carriers in connection with taking a longer detour (diversion) or using tracks of another Manager with respect to the train timetable announced,
  • benefits lost by PKP PLK SA as a result of the inability to sell the route defined as a lack of possibility to run trains, costs related to drawing up and editing train timetables,
  • other costs incurred by PKP PLK S.A. resulting from the necessity to introduce additional unplanned railway track closures,
  • other costs resulting from cancelling closures.
• Additionally, the Contractor is obliged to cover costs of train delays resulting from reasons attributable to the Contractor and caused by:
  • untimely announcement of readiness to commence works and the need for closure,
  • introducing speed limits during works and after completing them other than those specified in the temporary rules and regulations,
  • extending the duration of the closure granted,
  • occupying active railway tracks during works without prior arrangement,
  • damaging railway infrastructure during works.
• Costs due to train delays will be calculated on the basis of data included in the Railway Operation Management System (SEPE), Quality section.
• If a contractual penalty under any title listed in the contract does not cover the damage incurred, the Contracting Authority may claim supplementary compensation, in line with general principles defined by the provisions of the Civil Code.

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