Current report no 87 / 2015

Construction of the Olsztyn ring road – decision on choosing the bid of Budimex SA

The Management Board of Budimex SA announces that on 22 December 2015 it was informed by the Olsztyn Branch of the General Directorate for National Roads and Motorways on the selection of the Budimex SA bid as the most advantageous bid in the limited tender procedure for the “Construction of S51 Olsztyn–Olsztynek at the section of Olsztyn-Wschód to Olsztyn-Południe (formerly: Construction of the Olsztyn ring road as part of the national road No 16 — Task No 2: from approx. km 10+000 to the end of the prepared area on approx. km 24+701 (behind the Olsztyn-Wschód junction))”.

• Bid value: PLN 742,290,952 net.
• Works commencement date: on the contract date.
• 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 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 bid value exceeds 10% of the equity of Budimex SA.