Current report no 50 / 2016

Retro Office House” office building in Wrocław – new contract of Budimex SA

The Management Board of Budimex SA reports that on 14.07.2016 a contract was signed with LC Corp Invest XVII Sp. z o.o. Projekt 21 Sp. k company for implementation of a project consisting in the construction of „Retro Office House” commercial and service facilities including internal and external infrastructure in Wrocław at Piłsudskiego, Komandorska, Bogusławskiego St.
Contract value: remuneration up to the maximum amount of PLN 89,936,000.00 net including a fixed lump-sum remuneration amounting up to PLN 58,985,000.00 net and a variable amount of PLN 30,951,000.00 net should the Investor order the contractor to perform fit-out works.
• Works commencement date: a day following the formal handing-over of the construction site and the documentation enabling Budimex to commence the implementation not later than 23.07.2016.
• Works completion date: 22.03.2018
• Guarantee period: 
? 60 months – for the completed works and roads, including elevators with fitting
and software as well as telecommunication low-voltage installations (BMS, SMS and related systems) together with fixtures, software and fittings;
? 10 years for steel and reinforced concrete constructions, roof tightness, insulation, elevation, floors, etc., subject to ordinary wear and tear during operation;
? 36 months for greenery, fit-out works,
? for fixtures and fittings - according to manufacturers’ guarantee periods,
but not less than 36 months.
Financial terms and conditions:
• Advance payment: n/a
• Payment terms:
? on a monthly basis, within 30 day from the Investor’s collection of the invoice.
• Bank guarantee on proper and timely performance 10 % of the fixed lump-sum net amount.
• Bank guarantee on removal of defects and faults within guarantee and warranty period:
a) 5% of the lump-sum net remuneration valid for the period of 5 (five) years
b) 2.5% of the lump-sum net remuneration in relation to defects in steel and reinforced concrete constructions, valid for the subsequent period of 5 years.
• Payment of the liquidated damages stipulated in the contract shall not exclude the injured party’s right to claim compensation on general terms in the amount exceeding the agreed liquidated damages.
• Liquidated damages limit of 10 % of the lump-sum remuneration in relation to damages for Budimex’s untimely performance of obligations.

Value of the contract shall exceed the threshold of PLN 77,010,000.

During the last 12 months Budimex SA has concluded a contract with LC Corp Invest XV Sp. z o.o. Projekt 4 sp. k. for the performance of assignment named  “Performance of technical evaluation of building no 5 at 19 Wałowa St. and demolition of building no 6 at 23 Wałowa St. in Gdańsk” for the amount of PLN 570,595.34 net.