Aktueller Bericht Nr. 60 / 2020

Construction of the DN1000 Goleniów-Lwówek pipeline together with the infrastructure necessary for its operation. Part 1 - Goleniów – Ciecierzyce - signing of the contract

The Management Board of Budimex S.A. announces that on 19 October 2020  the contract has been concluded between Gas Transmission Operator GAZ-SYSTEM S.A. ul. Mszczonowska 4, 02-337 Warsaw and Budimex S.A. on general works of the investment titled: Construction of the DN1000 Goleniów–Lwówek pipeline together with the infrastructure necessary for its operation, comprised of: Stage I – Goleniów – Ciecierzyce pipeline, Stage II – Ciecierzyce – Lwówek pipeline Part 1 - Goleniów – Ciecierzyce.

The information that our bid was selected as the most advantageous one was published on 21 September 2020 in the current report No 56/2020.

Contrct value: PLN 314,800,000.00 net.

Works commencement date: from the contract date

Works completion date: 30.11.2022 r.

Guarantee period: 36 months

Warranty period: 36 months

Advance payment: 15% of gross remuneration

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

Bank performance bond: 10% of total gross remuneration

Maximum amount of contractual penalty paid by the Contractor: 25% of net remuneration

Contractual penalties payable by the Ordering Party do not differ from the market standards.

The parties have the right to claim supplementary compensation exceeding the amount of contractual penalties stipulated in the contract, in accordance with the general principles of the Civil Code.

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

The selection of the bid of Budimex S.A. is not binding, as there is a possibility of lodging appeals with the Court of Arbitration of the Polish Chamber of Commerce in Warsaw.

The contract value exceeds the threshold of PLN 151,393 thousand net.