Current report no 39 / 2010

New contract for Budimex SA – A4 Dębica Pustynia – Rzeszów Zachodni

The Management Bard of Budimex S.A. reports that on 10 May 2010 they signed a contract with the General Directorate for National Roads and Motorways, Rzeszów Division, for the “construction of the A-4 motorway section from the Dębica Pustynia junction to the Rzeszów Zachodni junction from about km 537+550 to about km 570+300”.

• Contract value: 1,418,410,998.99 PLN net
• Commencement date: up to 30 days after concluding the contract
• Finish date: 24 months from the commencement date
• Guarantee: 60 months
• Financial terms: 
  • advance payment – 5% of the contract value
  • payment – 49 days after the Contracting Authority has received a VAT invoice
  • bank guarantee of advance payment – 5% of the contract value
  • bank guarantee of successful execution – 5% of the contract value
• Contractual penalties paid by the Contractor:
  • A. For exceeding the deadline for the completion of works – 0.01% of the Approved Contractual Amount per each day of delay
  • B. For withdrawal from the contract for reasons involving the Contractor – 10% of the Approved Contractual Amount
  • C. For failure to perform the Required Minimum Performance within the deadline – 0.01% of the Approved Contractual Amount per each day of delay
• Contractual penalties paid by the Contracting Authority:
  • A. The Contracting Authority will pay a contractual penalty of 10% of the approved contractual amount to the Contractor for withdrawal from the contract for reasons attributable to the Contractor.
• The Parties reserve the right to supplementary compensation which adapts the amount of contractual penalties to the amount of damage actually suffered

The contract value exceeds 10% of the equity of Budimex S.A.