Current report no 5 / 2016

Construction of a load-carrying structure for structure MS-4 – contract with the subcontractor of Budimex SA

The Management Board of Budimex SA hereby advises that it was notified that a subcontract signed by the Budimex SA consortium (consortium leader with 95% of shares) and Ferrovial Agroman SA (consortium partner with 5% of shares) with Vistal Gdynia S.A. for the construction of a load-carrying structure for structure MS-4 as part the project: “Construction of express road S7 at Miłomłyn – Olsztynek section, Ostróda Północ – Ostróda Południe subsection along the S7 road, and construction of the Ostróda ring road along the national road No 16 (subsection “B”)” has entered into force.

• Contract value: PLN 58,222,916.25 net.
• Works commencement date: the date of construction site hand-over which will take place on 01.03.2016
• Works completion date: 30.06.2017.
• Guarantee period: 61 months for works involving laying of the wearing course, 121 months for all the other works covered by the contract.
• Financial terms and conditions:
  • Payment: 30 days from the delivery of the invoice to the ordering party.
  • Bank performance bond: 9% of gross remuneration.
• Maximum contractual penalties: 20% of gross remuneration.
• The ordering party reserves the right to seek damages under general applicable rules if the amount of loss sustained exceeds the amount of the stipulated penalty.

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