Aktuální report č. 31 / 2015

Construction of a production hall in Bydgoszcz – new contract concluded by Budimex SA

The Management Board of Budimex SA would like to inform you that on 29 May 2015 it concluded a contract with SPX Flow Technology Poland sp. z o.o., with its registered office in Bydgoszcz, for construction of a production hall in Bydgoszcz.
Contract value: PLN 67,738,124.46 net.
Works commencement date: the date of signing the contract.
Works completion date: 24 March 2016.
Warranty periods: steel structure, prefabricated elements, roof structure – 15 years; concrete works – 10 years; other elements – from 2 to 5 years.
Financial terms and conditions:
Payment: 30 days of receipt by the Ordering Party of the relevant VAT invoice.
Performance bond: 10% of net contract price.
Penalties payable by the Contractor:
The Investor together with entities/persons appointed by the Investor or the project manager will be entitled to enter the construction site and the building (“Early Access”) after the date set in the work schedule, based on the protocol signed by both parties. Shall the Contractor refuse signing the protocol or allowing the Investor or any entity/person appointed by the Investor or the project manager entering the building, the Contractor shall be obliged to pay the Investor liquidated damages of 25% of the net contract price.
In the case of the Investor withdrawing from the contract in whole or in a part due to fault of the Contractor, the Contractor shall pay the Investor liquidated damages of 15% of the net remuneration for the part of works withdrawn from by the Investor.
In the case of non-rectifying work defects after the completion date within the time limit set in the acceptance certificate or the defect list, the Contractor shall pay the Investor liquidated damages of 0.1% of the net contract price for each day of delay in defect rectification.
Total liquidated damages for delay after the completion date or the date of completion of any stage cannot exceed 12% of the net contract price.
The Ordering Party shall be entitled to claim additional damages if the value of damage exceeds liquidated damages, in accordance with provisions of the Civil Code.
The contract value exceeds 10% of the equity of Budimex SA.