Current report no 9 / 2019

Conclusion of Contract for the implementation of the “B” phase of the Complex of Multi-Family Residential Buildings at ul. Mińska 69 in Warsaw

The Management Board of Budimex SA announces that on 28 February 2019, Budimex SA and Budimex Nieruchomości Sp. z o. o. (a wholly owned subsidiary of Budimex SA) concluded a contract for “Complete construction of the ‘B’ phase of the Complex of Multi-Family Residential Buildings, with commercial areas on the ground floor and an underground car park, as well as land development located at ul. Mińska 69”. The contract value is PLN 97,500,000 net and is the third contract concluded between the Companies since 3 August 2018.

The total value of the contracts with the same Ordering Party amounts to PLN 183,714,892.71 net since 3 August 2018. The highest value contract is the aforementioned one concluded under the following terms and conditions.

Terms and conditions of the highest value contract:

Contract value: PLN 97,500,000.00 net

Works commencement date: 1 March 2019

Works completion date: 30 November 2020

Guarantee period:

reinforced concrete structure, roof covering, insulation of underground and overground parts – 10 years

equipment, sanitary and electrical fixtures – according to the manufacturer’s guarantee, but not less than 2 years

other works – 66 months

Statutory warranty period: identical to the aforementioned guarantee periods

Advance payment: none

Payment terms: 30 days from the day of delivery of a correct VAT invoice to the Ordering Party

Bank performance bond: none

Maximum amount of contractual penalty paid by the Contractor: 10%

Maximum amount of contractual penalty paid by the Ordering Party: 10%

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

Penalties payable by the Ordering Party do not deviate from market standards.

The Parties reserve the right to seek damages under generally applicable rules if the amount of loss sustained exceeds the amount of the stipulated contractual penalty.

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

The total value of contracts signed between Budimex SA and Budimex Nieruchomości Sp. z o. o. after 3 August 2018, including the value of the contract reported herein, exceeds the threshold of PLN 127,386,000 net.