Current report no 54 / 2020

Construction of road S1 Pyrzowice – Kosztowy, section: Podwarpie – Dąbrowa Górnicza (reconstruction of National Road 1) - signing of the contract

The Management Board of Budimex S.A. announces that on 11 September 2020  the contract has been concluded between Budimex S.A  and  the Katowice Branch of the General Directorate for National Roads and Motorways in the open tender procedure titled: “Construction of road S1 Pyrzowice – Kosztowy, section: Podwarpie – Dąbrowa Górnicza (reconstruction of National Road 1)”.

The information that our bid received the highest score in the tender proceedings and was selected as the most advantageous one was published on 16 June 2020 in the current report No 35/2020 and on 30 July 2020 in the current report No 50/2020.

Contract value: PLN 229,368,072.00 net

Contract commencement date: on the date of Contract conclusion with the Contractor.

Works completion date: 30 months from the Contract date

Guarantee period for main works: from 5 to 10 years

Statutory warranty period: 60 months

Advance payment: maximum 10% of the Accepted Gross Contract Amount

Payment terms: within 30 days of the date of delivery of VAT invoices to the Employer, issued for the amounts certified in Payment Certificates

Bank performance bond: 10% of the Accepted Gross Contract Amount

Maximum amount of contractual penalty paid by the Contractor: 20% of the Accepted Gross Contract Amount

The Employer shall pay the Contractor a contractual penalty for the Contractor’s withdrawal from the contract due to reasons attributable to the Employer amounting to 15% of the Accepted Gross Contract Amount.

The Employer reserves the right to demand supplemental damages in excess of contractual penalties up to the amount of the actual loss that was incurred or could be incurred due to the improper performance of the contract by the Contractor.

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

The contract value exceeds the threshold of PLN 151,393 thousand net.