Current report no 86 / 2015

Strengthening of soil subbase – contract with the subcontractor of Budimex SA

The Management Board of Budimex SA advises that on 17 December 2015 the Company and the consortium of Keller Polska sp. z o.o. (consortium leader with 50% share) with the registered office in Ożarów Mazowiecki and Menard Polska sp. z o.o. (consortium partner with 50% share) with the registered office in Warsaw signed a contract for the works consisting in strengthening of soil subbase with regard to the performance of the contract for construction of express road S7 at the section between Nowy Dwór Gdański and Kazimierzowo.

• Contract value:PLN 154,999,994.69 net.
• Works commencement date: within 3 days as of signing the contract.
• Works completion date: 20 July 2017
• Guarantee period: no longer than until 30 April 2029.
• Financial terms and conditions:
  • Advance payment: 5% of gross contract value.
  • Payment: 30 days from the delivery of the invoice to the ordering party.
  • Bank performance bond: 10% of gross remuneration.
• Maximum contractual penalties: 20% of gross remuneration.
• The Ordering Party reserves the right to pursue damages exceeding the amount of contractual penalties provided for in the contract up to the amount of incurred loss.

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