Current report no 39 / 2016

Construction of the Non-Invasive Medicine Centre in Gdańsk — stage 1 — new contract of Budimex SA

The Management Board of Budimex SA hereby announces that on 6 June 2016, a contract with the Medical University of Gdańsk was signed for the construction of the Non Invasive Medicine Centre in Gdańsk — stage 1.
Contract value: PLN 285,673,106.46 net
Works commencement date: 7 business days as of the construction site hand-over (the construction site will be handed over within 7 business days as of receiving from the Investor a notice of its readiness to hand-over the construction site, save that the Investor shall notify the Contractor of its readiness to hand-over the construction site within 2 months as of signing this agreement)
Works completion date: the total completion of the contract is scheduled 23 months as of the hand-over of construction site.
Guarantee period: 8 years since total completion of the contract.
Financial terms and conditions:
Advance payment: no
Terms of payment: 30 days from the receipt of a properly issued VAT invoice by the Investor.
Bank performance bond: 5% of gross contract value.
Maximum penalties payable by the Contractor: 10% of net remuneration.
The Investor reserves the right to demand supplemental damages, increasing the amount of contractual penalties to the actual amount of incurred loss.
The value of the Contract exceeds 10% of Budimex SA’s own capital.