Current report no 25 / 2013

Construction of the Waste Management Plant in Bełżyce - a new contract for Budimex SA

The Management Board of Budimex SA announces that on 8th April 2013 a contract was signed with Celowy Związek Gmin 'PROEKOB', based in Bełżyce, for the 'Construction of the Waste Management Plant in Bełżyce for Celowy Związek Gmin "PROEKOB", based in Bełżyce, ul. Lubelska 3.'
Net contract value: PLN 36,502,613.01
Commencement date: once the construction site has been handed over
Deadline: 30.11.2013.
Guarantee period: 36 months
Financial terms and conditions:
Term of payment: 30 days from the delivery of the invoice to the Contracting Authority.
Performance guarantee: 10% of the gross remuneration
Penalties payable by the Contractor:
0.1% of the gross remuneration for each day of delay in performing the subject matter of the contract
0.1% of the gross remuneration for each day of delay in removing defects discovered during the acceptance procedure or during the guarantee and warranty periods
10% of the gross remuneration if the activities reserved for the Construction Site Manager and Works Managers are performed by some person other than the person stipulated in the Bid and approved in the contract (or an addendum thereto) by the Contracting Authority
10% of the gross remuneration for contract rescission or termination for reasons attributable to the Contractor
15% of the gross remuneration if the works under the Contract are performed by an entity other than the Contractor or a Subcontractor approved by the Contracting Authority in writing
Penalties payable by the Contracting Authority:
0.1% of the gross remuneration for each day of delay in handing over of the construction site
10% of the gross remuneration for withdrawal from the contract for reasons attributable to the Contracting Authority
If the value of the damage exceeds the contractual penalties, the Contracting Authority shall have the right to claim compensation on general terms.
In reference to current report no. 16/2013 of 14th March 2013, wherein Budimex announced the tender selection for the WMP in Bełżyce, the company Management Board informs that, as a result of an increase in equity value of Budimex SA, the net contract value does not exceed 10% of the equity, but - having information order in mind - the company announces that the contract will be executed.