Aktueller Bericht Nr. 61 / 2011

Construction of Słoneczny Dom housing estate in Lublin - a new contract for Budimex SA

The Management Board of Budimex SA announces that on 6 July 2011 it signed an agreement with MDI Sp. z o.o. with its registered office in Warsaw on the construction of 7 residential buildings - the Słoneczny Dom housing estate in Lublin (task G), implemented in 6 stages.

• The contract is worth PLN 73,340,000.00 net
  Commencement date: within 7 days from the date of concluding the contract
• Deadline: 30 April 2016
• Warranty and guarantee period: 38 months from the date of the last stage of completion
• Financial terms and conditions:
  • Payment: for partial invoices of a stage - 30 days from the date of delivering the invoice to the Contracting Authority; for the invoice of the last stage - 45 days from the date of delivering the invoice to the Contracting Authority
  • Deposit: 5% of the net value of each invoice
    Return of the deposit: 50% after stage completion, 50% after the expiry of warranty and guarantee period for a given stage, convertible to a bank or insurance guarantee
• Maximum penalties paid by the Contractor and the Contracting Authority: 10% of the net contract value
• The Contracting Authority reserves the right to supplementary compensation which carries the amount of contractual penalties to the amount of damage actually suffered
• This is a consecutive contract concluded with this Contracting Authority within the last 12 months. The previous one was concluded on 12 July 2010 and was valued at PLN 33,800.00 net. The total value of these two contracts is PLN 107,140,000.00 net

The total value of the contracts exceeds 10% of the equity of Budimex S.A.