Aktuální report č. 104 / 2014

Koszalin Coastland protection works – new contract concluded by Budimex Budownictwo sp. z o.o.

The Management Board of Budimex SA hereby announces that on 30 December 2014 Budimex Budownictwo sp. z o.o. with its registered seat in Warsaw (100% wholly owned subsidiary of Budimex SA) signed a contract with the Maritime Office in Słupsk to carry out the Koszalin Coastland protection works – tasks VI and VII.

• Contract value: PLN 74,917,134.83 net.
• Works commencement date: the date of signing the contract.
• Works completion date: 26 August 2015.
• Guarantee period: 60 months.
• Financial terms and conditions:
  • Payment: within 14 days of receipt by the ordering party of the relevant VAT invoice.
  • Performance bond: 10% of gross contract value.
• Contractual penalties payable by the contractor:
  • 10% of net remuneration in the event of withdrawal from or termination of the contract by the ordering party for reasons attributable to the contractor;
  • 0.5% of net remuneration for failure to pay or untimely payment of remuneration payable to subcontractors or their subcontractors;
  • 0.2% of net remuneration for each commenced day of delay in removing defects identified upon delivery or during the period of guarantee in relation to the deadline set by the ordering party.
• Contractual penalties payable by the ordering party:
  • PLN 10,000 (ten thousand zlotys) in the event of withdrawal from or termination of the contract by the ordering party for reasons attributable to the ordering party. This penalty shall not be higher than the “damage” incurred by the contractor.
• The ordering party reserves the right to claim damages in excess of the amount of the penalties specified in the contract.

The contract value shall exceed 10% of the equity of Budimex SA.