Current report no 32 / 2016

Reconstruction of a stadium in Lublin — new contract of Budimex SA

The Management Board of Budimex SA hereby notifies that on 4 May 2016 it concluded a contract with the Municipality of Lublin for the reconstruction of the athletics stadium at al. J. Piłsudskiego 22 in Lublin of a net value of PLN 29,947,000. It is another contract signed with the same ordering party in the last 12 months. The contract with the highest value is the contract signed on 29 March 2016 on the reconstruction of Plac Litewski. Details with respect to the contract of the highest value:
Subject of the contract: Changing to the landscaping of Plac Litewski in Lublin together with the reconstruction of its surface and the construction of a multimedia set of fountains with technical facilities, the demolition of the public toilet building, as well as the construction of a new underground public toilet, the transfer of the meteorological station, the reconstruction of the transportation system as well as traffic lights, the arrangement of green areas, the street furniture and the construction and reconstruction of the following networks: a water supply network with connections, a sanitary sewage network with connections, a rainwater drainage network with connections, a gas connection with the customer-side installation, a telecommunications duct system, a transformer substation, MV and LV lines and a site lighting system as well as the reconstruction of the LV lines and of the site lighting system — within the framework of the project under the name “Redevelopment of a part of the Lublin City Centre” planned to be subsidised within the framework of the Regional Operational Programme of the Lublin Voivodship 2014–2020.
Contract value:PLN 39,687,000 net.
Works commencement date: 7 April 2016.
Works end date: 30 April 2017.
Term of guarantee: 60 months.
Financial terms and conditions:
Payment: 21 days from the receipt of a VAT invoice by the ordering party.
Bank performance bond: 10% of gross remuneration.
Contractual penalties payable by the contractor:
5% of the gross remuneration for withdrawing from the full scope of the contract for reasons attributable to the contractor;
5% of the non-performed part of the contract for withdrawing from a part of the contract for reasons attributable to the contractor;
0.1% of the gross remuneration for the introduction of a contractor or a sub-contractor on the building site and for assigning works to such contractor or subcontractor without the knowledge and consent of the ordering party;
0.1% of the gross remuneration for failure to produce a certified true copy of the subcontract.
Contractual penalties payable by the ordering party:
5% of the gross remuneration for withdrawing from the full scope of the contract for reasons attributable to the ordering party;
5% of the non-performed part of the contract for withdrawing from a part of the contract for reasons attributable to the ordering party;
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 total value of the contracts exceeds 10% of the equity of Budimex SA.