Aktuální report č. 105 / 2014

Construction of Bełchatów ring road — new contract of Budimex SA

The Management Board of Budimex SA announces that on 31 December 2014 a contract was signed with the General Directorate for National Roads and Motorways, Branch in Łódź, to “Construct a ring road for the city of Bełchatów within National Road No 8”.

• Contract value:PLN 118,415,607.54 net.
• Commencement date: the date of signing the contract. The construction site will be handed over no later than 30 days from the date of contract execution.
• Completion date: 19 months after the date of executing the contract, including the grant of permission to use (the contract implementation time shall not include winter periods, i.e. from 15 December to 15 March).
• Guarantee period:
  • wearing course – 5 years, thin layer horizontal road signs – 1 year; thick layer horizontal road signs – 4 years; greenery – 3 years; other surface structure layers (with the exception of the wearing course), acoustic screens, vertical road signs, concrete prefabricates, road engineering structures – 10 years.
• Financial terms and conditions:
  • Advance payment: from 5 to 10% of the accepted gross contract amount.
  • Payment: 30 days of receipt by the Ordering Party of the relevant VAT invoice.
  • Performance bond: 10% of the accepted gross contract amount.
• Maximum penalties payable by the Contractor:
  • 20% of the accepted gross contract amount.
• Penalties payable by the Ordering Party:
  • 15% of the accepted gross contract amount for a withdrawal from the contract for reasons attributable to the Ordering Party.
• The Ordering Party reserves the right to demand supplementary compensation in excess of contractual penalties to the amount of the actual loss that was incurred or could be incurred due to the improper performance of the contract by the Contractor.

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