Current report no 40 / 2016

The construction of a Convenience Center type facility with offices and an underground garage within the Retail Park Franowo in Poznań — a new contract for Budimex SA

The Management Board of Budimex SA would like to announce that on 7 June 2016 it signed a contract with IKEA Centres Poland SA in Janki for the construction of a Convenience Center with offices and an underground garage within the Retail Park Franowo in Poznań.
 
Contract value: PLN 76,999,000 net
Works commencement date: 10 June 2016
Works completion date: 25 September 2017
Guarantee period: 3 years from the date of signing the Final Acceptance Certificate — 25 September 2020
Plus:

•  for all the structural components and the roof insulation and maintaining of the moisture-proofing of the structure — 10 years
•  for the sources and fixtures integrated with the LED light source — 5 years
•  for light sources other than LEDs, the care of green areas and plants — 2 years

 
Financial terms and conditions:

Advance payment: no
Payment conditions: payment within 30 days from the date of submission to the Employer of the duly issued invoice, according to the progress of the Contract Work.
Bank performance bond: 10% of the gross contract price.
Contractual penalties payable by the contractor:

•  for failure to meet the obligation to complete any part of all the work in accordance with the Contract Documentation — 0.2% of the net Contract Price for each commenced day of delay in relation to the Time Schedule,
•  for failure to remedy of a defect within the stipulated, second deadline — 0.2% of the value of the defective piece of work for each day of delay,
• for failure to fulfil the request of the Employer concerning the change of a Subcontractor or the termination of the agreement with a given Subcontractor within the prescribed deadline — 0.2% of the value of the Contract with the Subcontractor for each day of delay,
• for failure to obtain of the BREEAM certificate for reasons attributable to the Contractor at the level specified in the Contract — PLN 1,000,000,
• for failure to comply with the Policy and procedures of the Employer in the field of occupational health and safety on construction sites set forth in the relevant Appendix to the List of the Main Contract Terms and Conditions — PLN 1,000 for each violation,
• for failure to comply with all the relevant provisions of the Labour Law applicable to the Contractor's staff, including provisions pertaining to the employment, health and safety, social services, immigration and emigration and the failure to grant the employees of the Contractor of any rights under the law — PLN 1,000 for each violation,
• for violation of obligations set forth in Section 7.4.4. of the General Contract Conditions — PLN 1,000 for each violation,
• for failure to maintain order at the Construction Site — PLN 1,000 for each violation,
• for each detected case of violation of the ban of travelling on forbidden roads — PLN 1,000

 
The value of the Contract exceeds 10% of Budimex SA’s own capital.