Current report no 71 / 2016

Signing of contract for modernization of the Provincial Hospital in Toruń

The Management Board of Budimex SA announces that on 22 November 2016 the consortium of Budimex SA (consortium leader with 95% of shares) and Ferrovial Agroman SA (consortium partner with 5% of shares) signed a contract for reconstruction and expansion of the L. Rydygier Provincial Polyclinic Hospital in Toruń with Kujawsko-Pomorskie Inwestycje Medyczne Sp. z o.o. with its registered office in Toruń. The Company announced that the Employer chose the consortium bid as the most advantageous one in the current report No 91/2015 of 30 December 2015.

Contract value: PLN 275,191,167.77 net

Works commencement date: up to 30 days from contract signing date

Works completion date: 36 months from the hand-over of the construction site

Guarantee: 36 months

Financial terms and conditions:

Payment: 30 days from the receipt of a VAT invoice by the ordering party.

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

Contractual penalties payable by the contractor:

liquidated damages for delay in completion of works sections and elements specified in the schedule – 0.05% of the accepted gross contract value for each day of delay, however not exceeding 15% of the said amount;

liquidated damages for delay in removal of defects – 0.2% of the gross value of the defective element for each day of delay, however not exceeding 10% of the accepted gross contract value;

liquidated damages for defects which cannot be removed, decreasing the usable value – 100% of the gross value of the defective element plus actual cost of demolition of the defective element

liquidated damages for Employer’s withdrawal from the contract for reasons attributable to the contractor – 10% of the accepted gross contract value.

The Employer has the right to seek damages exceeding the amount of calculated liquidated damages on general terms.

The value of the bid exceeds the threshold of PLN 102,680 thousand.