Current report no 75 / 2015

Construction of the second carriageway of express road S3 at Zielona Góra Północ–Niedoradz section – new contract of Budimex SA

The Management Board of Budimex SA announces that on 20 October 2015 the Consortium of Budimex SA (Consortium leader with 95% of shares) and Ferrovial Agroman SA with its registered office in Madrid (Consortium partner with 5% of shares) signed with the Zielona Góra Branch of the General Directorate for National Roads and Motorways a contract for the construction of the second carriageway of express road S3 at Sulechów–Nowa Sól section: second section from km 286+043 to km 299+350.”

• Contract value: PLN 157,961,969.87 net.
• Works commencement date: on the contract date.
• Works completion date: 22 months from the conclusion of the contract. The implementation time does not include winter periods (i.e. from 15 December to 15 March).
• Guarantee period: 10 years.
• Financial terms and conditions:
  • Advance payment: from 1% to 5% 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 due to reasons attributable to the ordering party.
• The ordering party reserves the right to demand supplemental damages in excess of contractual penalties to the amount of the actual loss that was incurred or could be incurred due to improper performance of the contract by the contractor.

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