Current report no 71 / 2017

Modernisation of the Trzebinia - Krzeszowice section - signing of the contract

The Management Board of Budimex SA announces that on 2 October 2017 the consortium of Budimex SA (consortium partner with a share of 50%) and Torpol SA (consortium leader) concluded with PKP Polskie Linie Kolejowe SA the contract for “The execution of construction works under Tender No 2 – Modernisation of the Trzebinia – Krzeszowice section (km 29.110 - 46.700 of line No 133)”. We have announced that our consortium’s bid had been selected as the best bid in our current report No. 62/2017 of 3 August 2017. The bid value is PLN 596,720,898 net (including a contingency in the amount of PLN 77,530,000 net, which is used to pay the costs of labour, works, materials or equipment which are not covered by the contract but are necessary for its performance).

Works commencement date: not later than 42 days from the date of signing the contract

Works completion date: 27 months from the works commencement date

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

Advance payment: up to 10% of the Accepted Contract Amount, if the Contractor asks for an advance payment

Term of payment (in days): within 30 days from the date of the Employer’s receipt of a correctly issued invoice accompanied by an Interim Payment Certificate and acceptance certificates

Bank performance bond: 10% of the Accepted Gross Contract Amount

Maximum penalties: 30% of the Accepted Gross Contract Amount

Payment of a contractual penalty does 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.