Current report no 50 / 2010

A new contract for Budimex S.A. - Reconstruction of Provincial Road No. 352

The Management Board of Budimex S.A. announces that on 25 May, 2010 an agreement was signed with the Lower Silesian Road and Railway Services, having its registered office in Wrocław, regarding the reconstruction of provincial road no. 352 between Bogatynia/Zatonie-Radomierzyce - Stages I and II (section from km 12+546 to km 26+737) within the task: Reconstruction of Provincial Road No. 352 between Radomierzyce and Zatonie.

• Contract value: PLN 46,539,782.69 net
• Commencement date: handover of the construction site within 14 days from the date of concluding the contract, commencement of work within 7 days from the date of handover of the construction site.
• Deadline: 24 months from the date of concluding the contract
• Warranty validity period: 60 months, including 36 months for the thick-layer horizontal markings
• Payment: 21 days after the Contracting Authority has received a VAT invoice
• Bank guarantee of successful execution: 5% of the contract value
• Contractual penalties paid by the Contractor:
  • for delay in the commencement of work - 0.5% of the gross contract value for each day of delay
  • for delay in the performance of contract and removal of defects - 0.5% of the gross contract value for each day of delay
  • for withdrawing from the contract for reasons attributable to the Contractor – 20% of the gross contract value
• Contractual penalties paid by the Contracting Authority:
  • for withdrawing from the contract for reasons attributable to the Contracting Authority – 20% of the gross contractual remuneration, excluding the circumstances referred to in Article 145 of the Public Procurement Law
• The Contracting Authority is entitled to liability claims which exceed the amount of penalties to the degree of the actual damage suffered.
• This is yet another contract concluded with the Lower Silesian Road and Railway Services in the last 12 months. Their total value is PLN 90,260,309.06 net.

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