Aktueller Bericht Nr. 59 / 2010

Construction of an office building complex Libra Business Center – annex to the contract

With regard to current report no. 26/2010 of 25 March 2010 the Management Board of Budimex SA would like to inform you on 22 July 2010 an annex to the two contracts for construction of the office building complex Libra Business Center with with Palatium Sp. z o.o. Sk was signed. The annex introduces, among others, a change of the stages of works. Currently, the first contract concerns the 1st Stage – construction of building B. The second contract concerns the 2nd stage – construction of building A.
The contracts are still conditional in character. They are in force from signing of the annex but will become effective on the date when the Investor informs the Contractor that the contracts become effective. In the case of the contract for the 1st Stage: if the day of the contract becoming effective does not take place on 23 September 2010, the contract expires. In the case of the contract for the 2nd Stage: if the day of the contract becoming effective does not take place within 10 months from signing the annex to the contract, the contract expires

• The value of the contract for 1st Stage is currently: PLN 61,821,262.27 net
• The value of the contract for 2nd Stage is currently: PLN 43,628,737.73 net
• The total value of the contract is currently: PLN 105,450,000 net
• Commencement date: after the contracts have become effective, three days from the date of the construction site transfer.
• Deadline: 15 months from the date of the contracts becoming effective
• Guarantee period:
  • 120 months for structure
  • 60 months for roof coverings and fitted carpets
  • 48 months for remaining work
• Financial conditions:
  • Payment: 30 days after the Investor has received a VAT invoice
  • Deposit: 5% of the net contracts value
  • Bank deposit for successful execution: 5% of the net contracts value
• Contractual penalties: total limit of penalties for delay – 10%
• The Investor reserves the right to supplementary compensation in excess of contractual penalties up to the amount of damage actually suffered.

The total value of the concluded contracts exceeds 10% of the equity of Budimex SA.