Current report no 19 / 2016

Construction of an office building in Kraków – a new contract for Budimex SA

The Management Board of Budimex SA hereby announces that on 18 March 2016, two contracts were signed with Comarch S.A. with its registered office in Kraków. The first contract concerns the construction of the SSE7 office building in Kraków, with an underground garage, along with roads, footpaths and parking places, landscaping features, networks and systems. The second one concerns the reconstruction and conversion of the manner of use of a part of the Comarch SSE6 (Studio 1) office and retail building, from warehousing to production.

• Value of contract No 1:PLN 69,704,097 net.
• Value of contract No 2: PLN 4,350,000 net.
• The total value of the contracts signed on 18 March 2016 is PLN 74,054,097 net.

Essential terms of contract No 1:

• Works commencement date: upon hand-over of the construction site.
• Works completion date: 29 August 2017.
• Guarantee period: 60 months.
• Financial terms and conditions:
  • Payment: 30 days from the receipt of a VAT invoice by the Investor.
  • Performance bond: 10% of gross remuneration.
• Contractual penalties payable by the contractor:
  • 20% of gross remuneration in the case of termination of the contract by the ordering party, if the contractor fails to provide the performance bond or guarantee obligations or fails to renew (extend) them.
  • 20% of gross remuneration in the case of termination of the contract by the ordering party, if the contractor fails to obtain consent, pursuant to contracts with subcontractors, to payments made in the manner specified in the contract.
  • PLN 200,000 in the case of failure to provide, within the specified time limit, of detailed proposal tables, or in the case of their discrepancy with the proposal made previously.
  • 0.05% of gross remuneration for each day of delay in the implementation of the contract.
• The payment of the contractual penalties does not exclude the right to claim compensation exceeding the amount of those penalties.

The total value of the contracts exceeds 10% of the equity of Budimex SA.