Current report no 73 / 2015

Construction of S7 express road at Nowy Dwór Gdański-Kazimierzowo section — new contract of Budimex SA

The Management Board of Budimex SA would like to announce that on 9 October 2015 a contract was concluded with the General Directorate for National Roads and Motorways, Branch in Gdańsk, for the construction of S7 road Gdańsk (A1) – Elbląg (S22) section Koszwały (National Road No 7, in Koszwały) – Elbląg (with Kazimierzowo junction). Task 2: Nowy Dwór Gdański-Kazimierzowo”.

• Contract value: PLN 1,281,621,029.61 net.
• Works commencement date: on the date of concluding the contract.
• Works completion date: 27 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 ordering party.
  • 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 ordering party:
  • 15% of the accepted gross contract amount for withdrawal from the contract for reasons attributable to the ordering party.
• The ordering party 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.