Current report no 42 / 2016

Construction of Będzin Distribution Centre – new contract of Budimex SA

The Management Board of Budimex SA hereby announces that on 10 June 2016, a contract with Lidl sp. z o.o sp.k. was signed for the construction of Będzin Distribution Centre

• Contract value: PLN 118,907,352.72 net
• Works commencement date: 20 June 2016
• Works completion date: 28 February 2017
• Guarantee period:

a. for the roof and roof structure – 10 years;
b. for other elements of the facility – 5 years.
c. for devices and equipment: according to the manufacturer’s guarantee, not less than 24 months.
  
Financial terms and conditions:

Advance payment: none
Terms of payment: 21 business days of the date of receipt of invoice by the Investor
Bank performance bond: 10% of net contract value
Contractual penalties payable by the contractor:

• The total amount of contractual penalties for delay in performance of the works under the contract and repair works may not exceed 20% of the contractor’s remuneration.
• A contractual penalty of 15% of the value of works necessary to remove faults, defects and deficiencies discovered during the guarantee period, if these have not been removed within the time limit set out by the Investor.
• A contractual penalty of 5% of the amounts paid out by the Investor to subcontractors, in connection with the contractor’s delay in meeting the financial obligations of the contractor in relation to subcontractors, for which the Investor was held jointly and severally liable with the contractor.
• For the investor’s withdrawal from the contract, due to the contractor’s fault, in respect of the whole subject matter of the contract or a part thereof – a contractual penalty of 25% of the contractual remuneration for the whole subject matter of the contract or a part thereof.
• If the contractor ceases to perform the subject matter of the contract due to reasons attributable to the contractor or otherwise terminates the contract due to reasons attributable to the contractor, the contractor shall be obliged to pay the Investor, without any additional demand, a contractual penalty of PLN 10,000,000.
• Charging contractual penalties for the Investor’s withdrawing from the contract due to the contractor’s fault and the contractor’s ceasing to perform the subject matter of the contract due to reasons attributable to the contractor or the contractor’s terminating the contract due to reasons attributable to the contractor shall be mutually exclusive.
• In the case of violation of the obligation of the Investor’s company secrecy, specified in the contract, the general contractor shall be required in each instance to pay the Investor a contractual penalty of PLN 3,750,000 net.

 
Contractual penalties payable by the ordering party: none.
The value of the agreement exceeds 10% of the equity of Budimex SA.