Current report no 61 / 2018

Reconstruction of track system together with auxiliary infrastructure at the E59 railway line, Rokietnica-Wronki section- agreement signature

The Management Board of Budimex SA announces that on 14 September 2018, Budimex SA and PKP Polskie Linie Kolejowe S.A. concluded an agreement on reconstruction of track system together with auxiliary infrastructure at the E59 railway line, Rokietnica-Wronki section, under the “Works on the E59 railway line at the Poznań Główny-Szczecin Dąbie section”.

The information that our bid received the highest score in the tender proceedings and was selected as the most advantageous one was published on 22 May 2018 in current report No 31/2018 and on 10 July 2018 in current report No 49/2018.

Contract value: PLN 478,972,397.12 net

Works commencement date: the day after the day on which the Contract is signed by last of the Parties

Works completion date: 22 months from the works commencement date

Guarantee period: 72 months

Advance payment: 10% of the Accepted Gross Contract Amount

Payment terms: 30 days from the day of delivery of a correct invoice to the Employer by the Contractor

Bank performance bond: 10% of the total gross price

Contractual penalties payable by the Contractor do not deviate from the terms and conditions at which contracts for PKP are signed.

Penalties payable by the Employer do not deviate from market standards.

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

If a contractual penalty charged in accordance with the principles of the contract does not cover the entire damage suffered, the Employer may request supplemental damages on the general terms specified in the Civil Code.

The value of the contract exceeds the threshold of PLN 127,386 thousand net.