Current report no 72 / 2017

Conclusion of a contract for implementation of a residential building in Poznań

The Management Board of Budimex SA announces that on 4 October 2017 a “Turnkey contract for development of a multifamily residential building with commercial premises, including underground parking spaces and the necessary technical infrastructure, located in Poznań at ul. Milczańska 3” was signed by and between Budimex SA and Budimex Nieruchomości Sp. z o.o. (a wholly owned subsidiary of Budimex SA). The net value of the order is PLN 48,060,000. It has been the third contract concluded by and between the companies since March this year; the one of the highest value is the contract signed on 15 March 2017 for implementation of stage I of residential buildings located at ul. Dobrego Pasterza in Kraków.

Terms of the highest value contract:

Contract value: PLN 54,300,000 net.

Works commencement date: 15 March 2017

Works completion date: 15 February 2019

Guarantee period:

- reinforced concrete structure, roof (covering), insulation of the overground part – 10 years

- other works – 66 months

Advance payment: none

Terms of payment: 30 days from the delivery of a correct invoice to the Investor

Contractual penalties payable by the Employer – do not deviate from market standards

Maximum penalties for the Contractor – 10% of the Accepted Gross Contract Amount

The parties reserve the right to claim supplemental damages on general terms and conditions if the stipulated contractual penalty does not cover the amount of loss incurred.

Other contracts:

- concluded on 5 June 2017 for implementation of a Housing Estate at ul. Mangalia 2 in Warsaw. Contract value: PLN 28,790,625 net.

The total value of contracts concluded by and between Budimex SA and Budimex Nieruchomości Sp. z o.o. since March this year has exceed the threshold of PLN 111,446 million