Current report no 62 / 2019

Execution of construction works and implementation of a detailed design on the Most Wisła – Czechowice Dziedzice – Zabrzeg section – selection of the bid of Budimex Budownictwo Sp. z o.o.

The Management Board of Budimex S.A. announces that on 20.09.2019 PKP Polskie Linie Kolejowe S.A. selected the bid of Budimex Budownictwo Sp. z o.o. (a wholly-owned subsidiary of Budimex S.A.) as the most advantageous one in the tender for the “Execution of construction works and implementation of a detailed design and execution of construction works for the installation of railway traffic control equipment and railway telecommunication network equipment, including the provision of post-guarantee services for this equipment on the Most Wisła junction post – Czechowice-Dziedzice – Zabrzeg section”

The information that our bid was ranked the highest in the tender was published on 14 August 2019 in the current report No 55/2019.

The bid value exceeds the amount earmarked by the Ordering Party for the implementation of the contract.

Bid value: PLN 1,399,752,354.70 net (Accepted Contract Amount) including:

Contingency: PLN 111,195,161.05 (Contingency is used to cover payments for services or Works that are not specified in the bill of quantities)

Works commencement date: the day following the date of signing the Contract

Works completion date: 207 weeks from the works commencement date

Guarantee period: 72 months

Warranty period: 72 months

Advance payment: 10% of the Accepted Contract Amount for the basic scope

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

Bank performance bond: 10% of the total gross value

Maximum amount of liquidated damages paid by the Contractor: The total amount of liquidated damages shall not exceed 20% of the Accepted Contract Amount less the value of Contingency, however, if liquidated damages are charged for withdrawal from the contract due to the Contractor’s fault, the total amount of liquidated damages shall not exceed 30% of the Accepted Contract Amount less the value of Contingency.

Payment of a contractual penalty does not prejudice the Ordering Party’s right to seek damages exceeding liquidated damages provided for in the contract, in accordance with general principles, including those resulting from the loss of EU funding, if the loss of this funding was for reasons attributable to the Contractor.

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

The bid value exceeds the threshold of PLN 147,743 thousand net.