Aktuální report č. 60 / 2014

Expressway S5 Poznań - Wrocław - new contract for Budimex SA

The Management Board of Budimex SA announces that on 31 July 2014 the consortium of Budimex SA (consortium leader with 50% share) and Heilit+Woerner Sp. z o.o. (consortium partner with 50% share) signed a contract with the General Directorate for National Roads and Motorways for "Design and construction of S5 expressway Poznań – Wrocław at the section Korzeńsko (excluding the junction point) – Widawa Wrocław junction point, task 1, section from Korzeńsko (approx. 108+758 km) to 123+700 km".

• Contract value: PLN 468,500,000.00 net
• Commencement date: date of the contract
• Deadline: 30 months from the date of signing the contract. Winter periods (i.e. between 15 December and 15 March) shall not be included in the completion deadline.
• Guarantee period: 10 years
• Financial terms and conditions:
  • Advance payment: between 1% and 5% of the approved gross contractual amount
  • Payment: within 30 days of receiving an invoice by the Contracting Authority
  • Performance bond: 10% of the approved gross contractual amount
• Penalties payable by the Contractor:
  • 15% of the approved gross contractual amount with respect to withdrawal from the contract, and in the case of withdrawing from a part of works – 15% of the value of such works.
  • For exceeding the deadline – 0.01% of the approved gross contractual amount for each day of delay, 0.03% of the approved gross contractual amount for each day of delay in the third and fourth week, 0.05% of the approved gross contractual amount for each day of delay in each subsequent week beginning from the fifth week.
  • For a failure to execute each of the required minimum (milestones) by the deadline adopted – 0.02% of the approved gross contractual amount for each day of delay, contractual penalties for a failure to meet each of the terms and conditions concerning the required minimum shall be charged separately.
  • For a failure to report any subcontractor, supplier, service provider – PLN 30,000 per each unreported subcontractor, supplier or service provider.
  • For execution of works other than defined in the bid with the help of subcontractors without consent of the Contracting Authority – 10% of the value of works executed by subcontractors.
• Penalties payable by the Contracting Authority:
  • 15% of the approved gross contractual amount for withdrawal from the contract for reasons attributable to the Contracting Authority.
• The Contracting Authority reserves the right to compensation which exceeds the amount of contractual penalties to the amount of damage actually suffered.

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