Current report no 53 / 2010

New contract of Budimex SA - Redevelopment/Modernisation of the runway at Okęcie airport in Warsaw

The Management Board of Budimex SA reports that on June 28, 2010 the consortium of Budimex SA (the leader) and Ferrovial Agroman SA, operating as a civil law partnership, executed a contract with Przedsiębiorstwo Państwowe Porty Lotnicze: "Redevelopment/Modernisation of DS-1 runway, taxiways, patrol road and fire escape route at Fryderyk Chopin Airport in Warsaw".

• Contract value: PLN 73,459,823.77 net
• Commencement date: the building site will be handed over within 14 days from the Contract execution date
• Deadline: up to 14 months from the date of handing over the building site
• Guarantee period: 36 months
• Financial conditions:
  Payment: 21 days after the Contracting Authority has received a VAT invoice
  Bank performance guarantee - 10% of the contract price gross
• Contractual penalties paid by the Contractor:
  1. For delay in Contract performance on grounds attributable to the Contractor - 0.1% of the contractual compensation net for each day of delay, though not more than 10% of the contractual compensation net.
  2. For delay in removal of defects identified during take-over or revealed during the guarantee period - 0.5% of the contractual compensation net for each day of delay starting from the deadline set for the removal of any such defects.
  3. In the case of Contract termination on grounds attributable to the Contractor - 10% of the contractual compensation net;
  4. In the case of failure to meet the deadlines for work at the intersection of runways penalties according to the hour rate of PLN 100,000 per each hour of delay will be charged. In the case of incomplete hours the penalties will be charged proportionally to the duration of delay.
  Penalties paid by the Contracting Authority:
  1. In the case of Contract termination on grounds attributable to the Contracting Authority - 10% of the difference between the contractual compensation net and the sum of net amounts paid to the Contractor for performance of this Contract until the day of termination.
  The Contracting Authority reserves the right to seek indemnity in line with general principles of the Civic Code regardless of the contractual penalties charged, in particular indemnity for losses suffered by third parties for which the Contracting Authority was held liable due to untimely performance of the Contractor.

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