Current report no 71 / 2010

Construction of access roads to the Lublin ring-road - new contract for Budimex SA

The Management Board of Budimex SA reports that on 21 October 2010 Budimex SA concluded a contract on "Access roads to the Lublin ring-road – extension of ul. Mełgiewska towards the "Mełgiew" junction along express roads S12, S17 and S19" with Gmina of Lublin (Lublin Municipality).

• Contract value: PLN 102,119,185.87 net
• Commencement date: no later than 30 days after concluding the contract
• Deadline: 24 months from the date of concluding the contract
• Guarantee period: 36 months
• Financial conditions:
  • Payment: 21 days after the Contracting Authority has received a VAT invoice
  • Bank guarantee for successful execution – PLN 8,300,125.00
• Contractual penalties paid by the Contractor:
  • For delay in realisation of the subject of the contract in relation to the deadlines specified in the schedule of work and expenditure – 0.4% of the gross offer price
  • For delay in executing the subject of the contract in the amount of 0.4% of the gross offer price for each day of delay
  • In the case of breaking of the take-over activities by the take-over board for reasons involving the Contractor in the amount of 0.3% of the gross offer price for each day of delay
  • For delay in removal of defects revealed during the guarantee period in the amount of 0.3% of the gross contractual remuneration
  • For introducing a subcontractor to the construction site and charging it with execution of work included in this contract with no agreement and knowledge of the Contracting Authority in the amount of 10% of the gross offer price
  • In the case the Contracting Authority withdraws from the agreement due to circumstances for which the Contractor bears responsibility - 10% of the gross offer price
• Penalties paid by the Contracting Authority:
  • For renouncing the Contract for reasons attributable to the Contracting Authority – 10% of the gross offer price
• The parties accept the possibility to claim compensation on general terms in the amount of damage or loss really suffered.

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