Aktuální report č. 37 / 2015

Construction of express road S7 at Ostróda Północ – Ostróda Południe section – new contract for Budimex SA

The Management Board of Budimex SA announces that on 15 June 2015 the consortium of Budimex SA (consortium leader with 95% of shares) and Ferrovial Agroman SA with its registered office in Madrid (consortium partner with 5% of shares) signed with the Olsztyn Branch of the General Directorate for National Roads and Motorways a contract for “Construction of express road S7 at Miłomłyn – Olsztynek section, Ostróda Północ – Ostróda Południe subsection, along the S7 road and construction of the Ostróda ring road along national road No 16 (subsection “B”)”.

• Contract value: PLN 1,071,707,605.66 net.
• Commencement date of the works: on the date of concluding the contract.
• Completion date of the works: 20 months from the conclusion of the contract. The implementation time does not include winter periods (i.e. from 15 December to 15 March).
• Guarantee terms:
  • Wearing course – 5 years;
  • Thick layer horizontal road signs – 4 years;
  • Greenery – 3 years;  
  • Thin layer horizontal road signs – 1 year;
  • Other surface structure layers, acoustic screens, vertical road signs, concrete prefabricates, road engineering structures – 10 years.
• Financial terms and conditions:
  • Advance payment: 5% 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.
• Maximum penalties payable by the Ordering Party:
  • 15% of the accepted gross contract amount for 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.