Aktueller Bericht Nr. 71 / 2019

Conclusion of an agreement between Budimex Budownictwo Sp. z o.o. and Budimex S.A for “Execution of construction works and implementation of a detailed design on the Most Wisła – Czechowice Dziedzice – Zabrzeg section”

The Management Board of Budimex S.A. announces that on 6 November 2019 the contract has been concluded between Budimex S.A. and Budimex Budownictwo Sp. z o.o. (a wholly-owned subsidiary of Budimex S.A.). for the implementation of some works falling within the scope of the Investment:  “Execution of construction works and implementation of a detailed design and execution of construction works for the installation of railway traffic control equipment and railway telecommunication network equipment, including the provision of post-guarantee services for this equipment on the Most Wisła junction post – Czechowice-Dziedzice – Zabrzeg section”.

The information that Budimex Budownictwo Sp. z o.o. bid received the highest score in the tender proceedings and was selected as the most advantageous one was published on 14 August 2019 in the current report No 55/2019 and on 20 September 2019 in the current report No 62/2019, and information about conclusion of an agreement between Budimex Budownictwo and PKP Polskie Linie Kolejowe S.A. was published on 10 October 2019 in the current report No 68/2019.

Bid value: PLN 1,371,757,307.60 net (Accepted Contract Amount) including:

Contingency: PLN 108,971,257.83 (Contingency is used to cover payments for services or Works that are not specified in the bill of quantities)

The total number of orders with the same Ordering Party in the last 12 months amounted to PLN 1,556,652,238.17 net. The highest value order is the above-named bid.

Works commencement date: the day following the date of once the construction site has been handed over

Works completion date: 207 weeks counted from 11 October 2019

Guarantee period: 72 months

Warranty period: 72 months

Advance payment: 10% of the Accepted Contract Amount for the basic scope

Payment terms: 30 days from the day of delivery of a correct VAT invoice to the Ordering Party by the Contractor

Bank performance bond: not applicable

Maximum amount of liquidated damages paid by the Contractor: The total amount of liquidated damages shall not exceed 20% of the Accepted Contract Amount less the value of Contingency, however, if liquidated damages are charged for withdrawal from the contract due to the Contractor’s fault, the total amount of liquidated damages shall not exceed 30% of the Accepted Contract Amount less the value of Contingency.

Payment of a contractual penalty does not prejudice the Ordering Party’s right to seek damages exceeding liquidated damages provided for in the contract.

Other terms and conditions of the contract do not differ from the market standards.

The contract value exceeds the threshold of PLN 147,743 thousand net.