Current report no 35 / 2017

Contracts between Budimex S.A. and Lublin municipality

The Management Board of Budimex SA announces that on 27 April 2017 it concluded two contracts with Lublin municipality: for execution of a Nursery at ul. Zelwerowicza in Lublin amounting to PLN 11,148,000 net and for reconstruction of the Park at ul. Zawilcowa in Lublin amounting to PLN 5,166,072.85 net. The total value of contracts concluded with Lublin municipality within the last 12 months is PLN 117,390,454 new and exceeds the PLN 111,446 thousand threshold. The highest-value contract concluded within the last 12 months is the contract concluded on 15 February 2017 for the construction of a new course of the voivodeship road DW 809 in Lublin, in the section from the crossroads of Bohaterów Monte Cassino street with Wojciechowska street to the Sławin junction amounting to PLN 71,129,381.25 net.  

Details of the highest-value contract: 

Investor: Roads and Bridges Authority, MPWiK w Lublinie Sp. z o.o. acting on behalf of Lublin municipality

Works commencement date: 14 days as of signing the contract

Works completion date: 30 April 2018

Guarantee period: 60 months Advance payment: 70% of the annual remuneration limit

Bank guarantee: 100% of the advance payment value

Bank performance bond: 5% of gross remuneration 

Contractual penalties:

- for delay in submitting the draft of the schedule of works and expenditures for approval: penalty in the amount of 0.01% of the gross contract value for each day of the delay; 

- for failure to include Employer’s remarks in the schedule of works and expenditures: penalty in the amount of 0.2% of the gross contract value;

- for delay in timely execution of the object matter of the contract: penalty in the amount of 0.02% of the gross contract value for each day of the delay; 

- for delay in execution of the object matter of the contract according to the timeline specified in the schedule of works and expenditures: penalty in the amount of 0.02% of the gross contract value for each day of the delay;

- in case of failure to submit the draft of the subcontractor’s agreement for approval, the subject matter of which are construction works, or the draft of an amendment thereto: penalty in the amount of 0.02% of the gross contract value for each instance of failure to submit the draft of the agreement or its amendment;

- in case of failure to introduce amendment to the subcontractor’s agreement regarding the term of payment: penalty in the amount of 0.02% of the gross contract value for each instance of no amendment;

- in case of failure to submit a certified true copy of the subcontractor’s agreement or the amendment thereto: penalty in the amount of 0.02% of the gross contract value for each day of the delay;

- for untimely payment of remuneration for Subcontractors or their Subcontractors: penalty in the amount of 0.02% of the gross contract value for each day of the delay; 

- if it would be necessary to make direct payments to Subcontractors or their Subcontractors: penalty in the amount of 0.05% of the gross contract value for each case in which direct payment shall be made;

- if it is found out that: a) the Contractor introduced a Subcontractor or its Subcontractors to the construction site and commissioned them with performance of works covered by this contract without the Employer’s knowledge and consent, or b) part of or all works are performed by a different subcontractor or its Subcontractor than the one for whom the Employer granted its consent, or c) Subcontractor or its Subcontractor performs different works than the works specified in the subcontractor’s agreement: penalty in the amount of 0.5% of the gross contract value for each identified instance; 

- If the acceptance procedures by the acceptance committee are discontinued due to the reasons attributable to the Contractor by due to: a) Lack of the as-built survey, b) Lack of the appropriate reports and certificates, c) Lack of the prepared as-built documentation, d) Lack of management statements or other documents that the acceptance committee directed to prepare and which are provided for in the applicable laws: penalty in the amount of 0.02% of the gross contract value for each day of break; 

- if works are performed without the plan of the temporary traffic organisation approved by the Employer: penalty in the amount of 0.02% of the gross contract value for each identified instance;

- if works are performed not according to the approved plan of the temporary traffic organisation: penalty in the amount of 0.02% of the gross contract value for each identified instance; 

- for delay in timely submission of the monthly report: penalty in the amount of 0.01% of the gross contract value for each day of the delay;

- for delay in timely submission of the Third Party liability insurance policy: penalty in the amount of 0.02% of the gross contract value for each day of the delay;

- for delay in removal of defects in the object matter of the contract identified during the guarantee period: penalty in the amount of 0.02% of the gross contract value for each day of the delay; 

- in the event of withdrawal from the contract for reasons attributable to the Contractor: penalty in the amount of 5% of the gross contract value;

- for delay in submitting documents proving that the persons supervising the construction works are employed by the Contractor under the employment agreement: 0.2% of the gross contract value. 

Penalties payable by the Employer: 5% of gross fixed price for withdrawal from the contract for reasons attributable to the Employer.  

The Parties have the right to seek damages on general terms, up to the actual value of damage or loss. 

Other contracts concluded with Lublin municipality in the last 12 months:

- the contract signed on 4 May 2016 by the consortium including Budimex S.A. (consortium leader with the share of 74%) and Tamex Obiekty Sportowe S.A. (consortium partner) for the reconstruction of the Start Lublin Arena amounting to PLN 29,947,000 net.