Current report no 87 / 2017

Signature of a contract for adaptation of national road No 3 to the parameters of the express road along the Miękowo (end of Miękowo by-pass) – Rzęśnica (Rzęśnica junction, junction included) section

The Management Board of Budimex SA announces that on 18 December 2017 a contract was concluded by and between the company and the Szczecin Branch of the General Directorate for National Roads for adaptation of national road No 3 to the parameters of the express road along the Miękowo (end of Miękowo by-pass) – Rzęśnica (Rzęśnica junction, junction included) section as part of the task: Construction of S3 road along the Miękowo – end of Brzozowo by-pass section, including expansion of the Miękowo – Rzęśnica section. We announced that our company’s bid had been selected as the most advantageous one in current report No 65/2017 of 18 August 2017.

Contract value: PLN 102,663,313.40 net.

 Commencement date: on the Contract conclusion date.

Completion date: 34 months from the date of the Contract conclusion, including obtaining the permit for use. The design time includes winter periods (i.e. from 15 December to 15 March). The Works implementation time (Works implementation stage) does not include winter periods.

Guarantee periods: 10 years starting from the date specified in the Work Acceptance Certificate, and if the Work Acceptance Certificate is issued with reservation that in the Quality Guarantee scope there are overdue works that need to be completed, from the date specified in the inspection report made during the inspection and contract settlement period, confirming completion of overdue works.

Wearing course – 5 years;

Thin layer traffic marks – 1 year;

Thick layer traffic marks – 4 years;

Greenery – 3 years;

Advance payment: Total amount of advance payment: from 5% to 10% of the Accepted Gross Contract Amount.

Payment conditions: within 30 days of the date of delivery of VAT invoices to the Employer, issued for the amounts certified in Payment Certificates.

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

Maximum total value of contractual penalties due for the Contractor: 15% of the Accepted Gross Contract Amount for Contractor’s withdrawal from the Contract due to causes attributable to the Employer.

Maximum total value of contractual penalties due for the Employer: 20% of the Accepted Gross Contract Amount.

The Employer reserves the right to demand supplemental damages in excess of contractual penalties to the amount of the actual loss that was incurred or could be incurred due to the improper performance of the Contract by the Contractor.

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