Aktuální report č. 71 / 2015

Expansion and reconstruction of commercial and service facilities in Wrocław — new contract of Budimex SA

The Management Board of Budimex SA would like to announce that on 6 October 2015 two contracts were concluded with companies belonging to Womak Holding sp. z o.o. Group. The first contract (Contract 1) was signed with Womak OMEGA sp. z o.o. with its registered seat in Wrocław and concerns the expansion of commercial and service facilities at ul. Grabiszyńska in Wrocław. The second contract (Contract 2) was signed with Womak LAMBDA sp. z o.o. with its registered seat in Wrocław and concerns the construction of a shopping centre of a commercial and office building at ul. Pilczycka in Wrocław.

• Value of Contract 1: PLN 37,199,000 net.
• Value of Contract 2: PLN 12,859,000 net.

Details with respect to the contract of the highest value (Contract 1):

• It is a conditional contract. The contract enters into force, if until 31 December 2015 the following circumstances are present:
  • hand-over by the investor to the contractor of the final permit for the expansion and reconstruction of the commercial and service building of the premises at ul. Grabiszyńska 238-240 in Wrocław;
  • hand-over by the investor to the contractor of the construction site;
  • ensuring by the investor of validity and enforceability for all agreements and administrative decisions required for the implementation of the contract for the date of handing over the construction site.
  • The prerequisite shall be deemed to be fulfilled, should all circumstances referred to above be present cumulatively until 31 December 2015 at the latest.
• Works commencement date: upon the hand-over of construction site by the investor
• Works completion date: until 31 October 2016 (the deadline depends on the fulfilment of the prerequisite).
• Guarantee periods: 7 years for reinforced concrete works and roof covering together with flashings and load-bearing structure; 3 years for the elevation together with the aluminium joinery, as well as the remaining construction works.
• Financial terms and conditions:
  • Payment: 30 days from the delivery of the invoice to the employer.
  • Bank performance bond: PLN 3,444,992.80.
• Maximum contractual penalties: 15% of net remuneration.
• The investor reserves the right to seek damages on general terms.

The cumulated value of the signed contracts exceeds 10% of the equity of Budimex SA.