Current report no 31 / 2017

Contracts for construction of residential buildings signed with Asbud Centrum Sp. z o.o.

Contracts for construction of residential buildings signed with Asbud Centrum Sp. z o.o.
The Management Board of Budimex SA notifies that on 10 April 2017 Budimex SA signed two contracts with Asbud Centrum Sp. z o.o. having its registered office in Warsaw for construction of residential buildings. Consequently, the aggregate net value of contracts signed over the last 12 months with Asbud Group companies amounts to PLN 185,060,780 and exceeds the threshold of PLN 111,446,000. The contract of the highest value signed over the last 12 months is that of 29 September 2016, concluded with Asbud Wola Sp. z o.o., for construction of a group of residential buildings identified with letters A and C, together with the required infrastructure, located at 85 Grzybowska Street in Warsaw, to the net value of PLN 64,389,681.59.
Details of the highest-value contract:
Works commenced on: 3 October 2016
Works to be completed on: 30 June 2018
Guarantee period: 72 months.
Advance payment: none
Payment deadlines: 30 days from the issue of a VAT invoice.
Due performance bank guarantee: 5% of the gross lump-sum remuneration
 Contractual penalties paid by the Contractor:
- 0.02% of gross remuneration for each day of delay in completion of a Stage (exceeding 7 calendar days) and the final completion date. Penalties for interim stages will not be charged if the final completion date is adhered to;
- 0.05% of gross remuneration for each day of delay in Defect removal;
- PLN 1,000,000 - if the Contractor fails to conclude a subcontract for fit-out works with the entity indicated by the Project Owner in the situation described in clause 2.11 of the Contract;
- 0.05% of the lump-sum remuneration for each day of delay in performance of the obligations to conclude the insurance agreements and provide the guarantee bond.
- 10% of net lump-sum remuneration if the Project Owner withdraws from the Contract for reasons attributable to the Contractor;
 Contractual penalties payable by the Ordering Party:
- for withdrawal from the Contract by the fault of the Project Owner if a due and payable invoice is not paid according to the Contract: 10% of the net lump-sum remuneration.
Payment of the contractual penalty does not preclude the Ordering Party’s right to claim damages in excess of the contractual penalty.
 
The other contracts signed by Budimex SA with Asbud Group companies over the last 12 months:
 
- a contract dated 29 September 2016 for construction of a residential building identified with letter B, including the required infrastructure, located at 85 Grzybowska Street in Warsaw.
- a contract dated 10 April 2017 for construction of a residential building identified with letter A, including the required infrastructure, located at 28 Karolkowa Street in Warsaw.
- a contract dated 10 April 2017 for construction of a residential building identified with letter B, including the required infrastructure, located at 28 Karolkowa Street in Warsaw.