Current report no 66 / 2016

Construction of Towarowa Street in Olsztyn, from the junction of Towarowa and Leonharda Streets to the planned Olsztyn ring road - Budimex SA and Ferrovial Agroman SA consortium’s new contract

rb bx/66/2016

The Management Board of Budimex SA announces that on 29 September 2016 the consortium of Budimex SA (consortium leader 95%) and Ferrovial Agroman SA (consortium partner 5%) signed a contract with Olsztyn City Hall for the construction of Towarowa Street in Olsztyn, from the junction of Towarowa and Leonharda Streets to the planned Olsztyn ring road 

Contract value: PLN 83,787,127.22 net.

Works commencement date: not later than 14 days after signing the contract.

Works completion date: 27 months from the conclusion of the contract.

Guarantee periods: 72 months of quality guarantee and statutory warranty for defects, for the entirety of construction works covered by the contract, starting from the date of Work Acceptance Certificate for the entirety of works.

Financial terms and conditions:

Advance payment: none

Payment: 30 days from the day, on which the invoice, along with the required documents, is presented.

Bank performance bond: 10% of the accepted gross contract amount.

Maximum penalties payable by the Contractor:

30% of the accepted gross contract amount.

The Investor reserves the right to seek supplemental damages on the terms set forth in the Polish Civil Code.

The contract value does not exceed the threshold of PLN 102,680 thousand but the company announced the selection of the bid in current report No 55/2016 when a lower threshold value was in force.