Aktuální report č. 92 / 2014

Construction of the 3rd stage of Business Garden Wrocław – a new contract of Budimex SA

The Management Board of Budimex SA would like to inform you that on 25 November 2014, a contract was signed with Landprop Services I Sp. z o.o. with its registered office in Warsaw. The contract concerns execution of the 3rd stage of Business Garden Wrocław, i.e. 3 office buildings (4, 5, 7) and a restaurant pavilion R1 with a shared underground parking lot.

• Contract value: EUR 45,300,125 net, which is an equivalent of PLN 189,880,000 net, converted at average NBP exchange rate of 25 November 2014 (EUR 1 = PLN 4.1916)
• Works commencement date: 8 December 2014 (hand-over of the building site)
• Works completion date: 1 September 2016
• Term of guarantee: 10 years, except for: furnishings (5 years), greenery (3 years), equipment and movable components (2 years)
• Performance bond:
  • 10% of the gross contract price (valid throughout the contract execution period + 3 months)
  • 5% of the gross contract price: performance bond for the warranty and guarantee period + 3 months
• Contractual penalties paid by the contractor:
  • 0.05% of the gross contract price per one day of delay in execution of milestones and execution of the whole contract as well as defects removal. If the delay exceeds 2 months, the additional penalty shall amount to 10% of the gross contract price. If the final deadline is met, the penalties for milestones shall be cancelled.
• Maximum penalties:
  • The total penalty for all delays shall not exceed 20% of the gross contract price.
• Reservation of the contractual penalty does not preclude the Ordering Party’s right to pursue compensation exceeding the amount of contractual penalty on general terms.

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