Aktuální report č. 86 / 2014

Construction of S7 expressway section Miłomłyn-Olsztynek, subsection Miłomłyn-Ostróda North (subsection "A") – a new contract for Budimex SA

The Management Board of Budimex SA announces that on 5 November 2014 the consortium composed of Budimex SA (consortium leader with a 95% share) and Ferrovial Agroman SA, with its registered office in Madrid (consortium partner with a 5% share), and the General Directorate for National Roads and Motorways, Olsztyn Branch, signed a contract for the "Construction of S7 expressway section Miłomłyn-Olsztynek, subsection Miłomłyn-Ostróda North (subsection "A")".

• Contract value: PLN 237,635,645.98 net.
• Commencement date: the construction site will be handed over within 30 days of the date of concluding the contract.
• Completion deadline: 20 months from the date of concluding the contract (winter periods, i.e. between 15 December and 15 March, shall not be included in the completion deadline).
• Guarantee periods: horizontal thin-layered markings – 1 year; greenery – 3 years; horizontal thick-layered markings – 4 years; wearing course – 5 years; other road surface layers, acoustic screens, vertical markings, prefabricated concrete elements and road engineering structures – 10 years.
• Financial terms and conditions:    
  • Advance payment: 5% of the approved gross contractual amount.
  • Payment: 30 days from the day when the Contracting Authority receives a VAT invoice.
  • Performance bond: 10% of the approved gross contractual amount.
• Maximum penalties payable by the Contractor:
  • 20% of the approved gross contractual amount.
• 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 claim supplementary damages, increasing the amount of liquidated damages to the amount of the actual damage which has been suffered or may have been suffered as a result of the Contractor's improper performance of the contract.

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