Current report no 32 / 2017

Modernization of the railway line No 8 along the section: Warszawa – Okęcie – Radom (LOT B) – a contract signed by the consortium of Budimex SA, Strabag Group companies, ZUE SA

The Management Board of Budimex SA informs that on 11 April 2017, the consortium of: Budimex SA (a consortium partner with 33% stake), Grupa Strabag Sp. z o.o. (the consortium leader with 34% stake, comprising: Strabag Rail GmbH, Strabag Rail a.s., Strabag Általános Építő Kft.), ZUE SA (a consortium partner with 33% stake), signed a contract with PKP Polskie Linie Kolejowe SA for preparation of a construction design and working plans & specifications as well as for execution of LOT B works according to the Design & Build procedure under the Operational Programme Infrastructure and Environment 5.1-3 “Modernization of the railway line no 8, Warszawa Okęcie - Radom (LOT A, B, F) section - Stage II” project”. The Company informed about selection of the bid submitted by the consortium as the best one, in the Current Report No 2/2017 of 24 January 2017.   

Contract value: PLN 216,677,619.26 net

Works commencement date: date of signing the contract by and between the Ordering Party and the Constructor

Works completion date: 43 months from the date of signing the contract

Guarantee period: 72 months starting from the day on which the Work Acceptance Certificate is issued.

Warranty period: 72 months starting from the day on which the Work Acceptance Certificate is issued.  

Advance payment: up to 10% of the Accepted Gross Contract Amount

Payment term: 30 days from receipt by the Ordering Party of an accurate invoice, Due performance bank guarantee: 10% of the Accepted Gross Contract Amount, Maximum penalties for the Contractor: 30% of the Accepted Gross Contract Amount

Contractual penalties do not prejudice the Ordering Party’s right to seek damages exceeding liquidated damages provided for in the contract, in accordance with general principles, including those resulting from the loss of EU funding, if the loss of this funding was for reasons attributable to the Contractor.  

The value of the contract exceeds the threshold of PLN 111,446 thousand.