Current report no 12 / 2018

Conclusion of a contract for implementation of a residential building in Poznań

The Management Board of Budimex SA announces that on 12 March 2018 a “Contract for development of a multifamily residential building with commercial premises, including underground parking spaces and the necessary technical infrastructure, located in Poznań at ul. Smolna 13 – stage VI of the Project” was signed by and between Budimex SA and Budimex Nieruchomości Sp. z o.o. (a wholly owned subsidiary of Budimex SA).

The value of the order is PLN 27,219,387.36.

Since October 2017, this is the second contract concluded by and between the Companies, and the one of the highest value is the contract for implementation of the II stage of the complex of multifamily residential buildings “B”, “C”, “D” and “E” in Warsaw, at ul. Redutowa 25 signed on 21 February 2018.

Contract value: PLN 95,308,000.00.

Works commencement date: 28 February 2018

Works completion date: 31 January 2020

Guarantee period:

- reinforced concrete structure, roof (covering), insulation of the overground and underground part – 10 years

- other works – 66 months

Advance payment: none

Terms of payment: 30 days from the delivery of a correct invoice to the Investor

Contractual penalties payable by the Employer – do not deviate from market standards

Maximum penalties for the Contractor – 10% of the Accepted Gross Contract Amount

The parties reserve the right to claim supplemental damages on general terms and conditions if the stipulated contractual penalty does not cover the amount of loss incurred.

The total value of contracts concluded by and between Budimex and Budimex Nieruchomości since October 2017 has exceed the threshold of PLN 111,446 thousand.