Aktuální report č. 16 / 2016

Construction of a cooling tower – contract with a subcontractor of Budimex SA

The Management Board of Budimex SA hereby announces that on 9 March 2016, the company concluded a contract with Hamon Polska sp. z o.o. with its registered office in Warsaw for the design and construction of a cooling tower in the “turnkey” formula in relation to the performance of the contract for the construction of a new power unit at the Turów Power Plant in Bogatynia.

• Contract value:  PLN 82,745,115.80 net.
• Works completion date: 31 December 2018 or 34 (thirty-four) months from completion of excavation works by the Investor.
• Guarantee period: until 31 May 2022 for mechanical equipment, until 31 May 2023 for the structure, and until 31 May 2024 for paint and protective covering.
• Financial terms and conditions:
  • Advance payment: 5% of net contract value.
  • Payment: 30 days from the delivery of the invoice to the Investor.
  • Bank performance bond: 10% of net contract value.
• Maximum contractual penalties: 25% of net contract value.
• The Investor reserves the right to pursue damages exceeding the amount of contractual penalties provided for in the contract up to the amount of incurred loss.
• Subcontractor liability limit: 100% of net contract value.

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