Current report no 18 / 2017

Construction of Trasa Łagiewnicka in Kraków – conclusion of the contract by the consortium of Budimex SA and Ferrovial Agroman SA

Budimex SA Management Board reports that on 17 March 2017 the consortium of Budimex SA (the leader – the share of 95%) and Ferrovial Agroman SA (the partner with the share of 5%) concluded the contract with Trasa Łagiewnicka SA for the construction of Trasa Łagiewnicka in Kraków from the intersection of ul. Grota – Roweckiego to the intersection of ul. Beskidzka and ul. Halszki, along with the construction of the tram line section. The Company reported the selection of the Consortium bid as the most advantageous in the reports No. 72/2016 of 23 November 2016 and No. 77/2016 of 22 December 2016.

Contract Value: PLN 652,194,213.00 net

The Commencement of Works: counted from the date of contract conclusion

Completion Date: 31 December 2020

Guarantee Period: 11 years, counted from the date of issue of the Performance Certificate

Warranty Period: 11 years, counted from the date of issue of the Performance Certificate

Advance Payment: none

Payment Terms: 30 days from the date of producing the invoice to the Contracting Authority along with the required documents

Bank Performance Bond: 10% of the Accepted Contract Amount gross

Maximum Fines for the Contractor: 20% of the Accepted Contract Amount Gross

The Purchaser is entitled to additional compensation.

The Purchaser is entitled to claim compensation on general principles arising from the Civil Code

Maximum fines for the Contracting Authority 10% of the Accepted Contract Amount gross for rescission from the Contract for reasons attributable to the Contracting Authority.

The Contract Value exceeds the threshold of PLN 102,680 thousand