Current report no 46 / 2011

Performing construction work connected with modernising LCS Iława - the new contract of Budimex SA

The Management Board of Budimex SA reports that on 27 May 2011, the consortium composed of Budimex SA (leader, 99.8%), Tchas Polska Sp. z o.o. (partner, 0.1%) and Eiffage Budownictwo Mitex SA (partner, 0.1%) signed with PKP Polskie Linie Kolejowa SA (Polish Railway) in Warsaw, the contract on "Performing construction work connected with modernisation of line 9 at its section from 184.800 km to 236.920 km, within the area managed by the Local Management Centre in Iława".

• Value of the contract: PLN 758,264,998.15 (net amount)
• Work commencement date: after the Contractor is notified by the Engineer of the date at least 7 days in advance
• Work completion date: 30 months after the commencement date
• Guarantee period: 3 years
• Financial terms and conditions:
  • Payment: 30 working days from the Ordering Party receiving a valid VAT invoice
  • Bank guarantee of successful completion: 5% of the total gross amount
• Maximum contractual penalties paid by the Contractor: 10% of the net contract value

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