Current report no 11 / 2014

Design and construction of a tramway terminus in Olsztyn - a new contract for the consortium of Budimex SA and KZN Rail

The Management Board of Budimex SA announces that on 7 February 2014 the consortium composed of Budimex SA (leader, 84.63% share in the consortium), KZN Rail Sp. z o.o., with its registered office in Krakow (partner, 15.37% share in the consortium), and the Town Hall of Olsztyn signed a design-build contract for a tramway terminus at 40 Kołobrzeska Street in Olsztyn.

• Contract value: PLN 72,227,995.23 net
• Commencement date: on the date of signing the contract
• Completion date: 18 months from the date of signing the contract
• Guarantee period: 60 months
• Financial terms:
  • Payment: 30 days from the date when the invoice is delivered to the Contracting Authority
  • Performance bond: 10% of the gross remuneration
• Maximum amount of liquidated damages: 20% of the gross contract value
• The Contracting Authority has the right to claim compensation under general terms and conditions if the amount of damage exceeds the liquidated damages.

The contract's value exceeds 10% of the equity of Budimex SA.