Current report no 57 / 2016

Complete construction of a multi-family residential building, including retail and service facilities, underground car park, land development and the necessary technical infrastructure in Poznań, at ul. Gąsiorowskich 4 – a new contract signed by Budimex S

rb bx/57/2016

The Management Board of Budimex SA advises that on 5 August the company signed an agreement with Budimex Nieruchomości Sp. z o.o. (a wholly owned subsidiary of Budimex SA). This is the third agreement signed in the past 12 months with this Investor and at the same time an agreement with the highest net value of PLN 45,102,000.00. The other two include the agreement signed on 21 March 2016 for implementation of phase I of the residential development at ul. Dobrego Pasterza in Kraków and the agreement signed on 24 February 2016 for construction of phase II of the Wiślany Mokotów housing estate at ul. Bluszczańska in Warsaw.

The total net value of agreements signed during the last 12 months amounts to PLN 102,910,827.54.

Works commencement date: 1 September 2016

Works completion date: 31 July 2018

Guarantee period: 31 July 2028

Financial terms and conditions:
Advance payment – none

Payment: 30 days from the issue of a VAT invoice by Budimex SA

Guarantee deposit: 5% of the net value of works under the invoice

Bank performance bond: surety by Budimex SA

Maximum contractual penalties for both the Employer and the Contractor – 10% of the net contract value

The parties reserve the right to claim supplemental damages on general terms and conditions if the stipulated contractual penalty does not cover the amount of loss incurred.

The total value of agreements signed with the same Investor during the last 12 months exceeds the threshold of PLN 102,680 thousand.