Current report no 35 / 2018

“Execution of construction works consisting in reconstruction, extension and modification of the manner of use of the facilities comprising the Rother's Mills on Mill Island in Bydgoszcz” – selection of Budimex SA’s bid

The Management Board of Budimex SA announces that on 6 June 2018 the city of Bydgoszcz informed the Company that its bid had been selected as the most advantageous one in the tender for “Execution of construction works consisting in reconstruction, extension and modification of the manner of use of the facilities comprising the Rother's Mills complex together with accompanying infrastructure on Mill Island in Bydgoszcz”. The fact that the Ordering Party had evaluated the Company’s bid as the best was communicated in current report No 32/2018 dated 28 May 2018.

The total number of orders with the same Ordering Party in the last 12 months amounted to PLN 149,217,958.06 net. The highest value order is the above-named bid.

Terms of the highest value contract:

Bid value: PLN 74,899,558.83 net

Works commencement date: as agreed by both parties – upon hand-over of construction site

Works completion date: 29.12.2020

Guarantee period: until 29.12.2027

Advance payment: none

Payment terms: 30 days from the date of delivery of a correctly issued invoice by the Contractor

Bank performance bond: 10% of the total gross value

Bond under guaranty and statutory warranty: 30% of the performance bond amount

Contractual penalties payable by the Contractor do not deviate from market standards.

Contractual penalties payable by the Ordering Party – do not deviate from market standards.

Other terms and conditions of the contract do not differ from the market standards.

The parties reserve the right to supplemental damages in excess of the contractual penalties up to the amount of the actual loss which was incurred.

Total value of contracts signed between Budimex and its subsidiary and the city of Bydgoszcz, including the bid value, exceeds the threshold of PLN 127,386 thousand net.