Current report no 8 / 2016

Construction of the second carriageway of express road S3 at Niedoradz–Nowa Sól section – a new contract signed by Budimex SA

The Management Board of Budimex SA informs you that on 5 February 2016, the Consortium of Budimex SA (Consortium leader with 95% share) and Ferrovial Agroman SA (partner with 5% share) signed a contract for construction of the second carriageway of express road S3 at Sulechów–Nowa Sól section – third section from km 299+350 to km 316+640, with the General Directorate for National Roads and Motorways, Zielona Góra Branch.

• Contract value: PLN 153,223,518.27 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 periods: 10 years for pavement 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 1% to 5% of the accepted gross contract amount.
  • Payment: 30 days from the receipt of a VAT invoice by the Investor.
  • 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 Investor:
  • 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 additional damages in excess of contractual penalties to the amount of the actual or potential loss caused by improper performance of the contract by the contractor.

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