Aktuální report č. 91 / 2014

Construction of the Jarocin ring road — a new contract of Budimex SA

The Management Board of Budimex SA would like to inform you that a contract on “Construction of the Jarocin ring road as a part of road No S11” was signed on 18 November 2014 with the General Directorate for National Roads and Motorways, Branch in Poznań.

• Contract value:PLN 238,533,199.80 net.
• Works commencement date: on the date of contract execution.
• Works completion date: 24 months from the date of contract execution (the implementation time does not include winter periods, i.e. from 15 December to 15 March).
• Terms of guarantee: 10 years.
• Financial terms and conditions:
  • Payment: 30 days from the delivery of the VAT invoice to the Ordering Party.
  • Performance bond: 10% of gross contract value.
• Maximum penalties incurred by the Contractor: 20% of the accepted gross contract amount.
• Penalties incurred by the Ordering Party: for the Contractor’s withdrawal from the contract due to causes attributable exclusively to the Ordering Party — 15% of the accepted gross contract amount.
• The Ordering Party reserves the right to demand supplementary compensation, increasing the amount of contractual penalties to the actual amount of incurred loss which arose or could arise in connection with improper performance of the contract by the Contractor.

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