Current report no 72 / 2015

Construction of Kępno ring road — new contract of Budimex SA

The Management Board of Budimex SA would like to announce that on 7 October 2015 a contract was signed with the General Directorate for National Roads and Motorways, Opole Branch, for the construction of the Kępno ring road along the S11 express road — Section I.

• Contract value: PLN 53,677,000.00 net.
• Works commencement date: at on the date of concluding the contract.
• Works completion date: 28 months from the conclusion of the contract. The implementation time does not include winter periods (i.e. from 15 December to 15 March).
• Guarantee periods: 10 years for surface structure (excluding wearing course), acoustical barriers, traffic signs, concrete prefabricates, road engineering structures; 5 years for the wearing course; 4 years for thick layer traffic marks; 3 years for greenery; 1 year for thin layer traffic marks.
• Financial terms and conditions:
  • Advance payment: from 5% to 10% of the accepted gross contract amount.
  • Payment: 30 days of receipt of a VAT invoice by the employer.
  • Bank performance bond: 10% of the accepted gross contract amount.
• Maximum penalties payable by the contractor:
  • 20% of the accepted gross contract amount
• Maximum penalties payable by the employer:
  • 15% of the accepted gross contract amount for withdrawal from the contract for reasons attributable to the employer.
• The employer reserves the right to demand supplemental damages in excess of contractual penalties up to the amount of the actual loss that was incurred.

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