Current report no 24 / 2014

Construction of the Lublin Conference Centre and the Marshall’s Office Building in Lublin - a new contract for Budimex SA

The Management Board of Budimex SA announces that on 12 March 2014, the Company signed a construction work contract with the Marshall of Lubelskie Voivodeship for two separate investments named “Lublin Conference Centre" and "Construction of the Marshall’s Office Building in Lublin” with the necessary technical infrastructure.

• Contract value: PLN 89,722,999.99 net
• Commencement date: 14 days from the date of concluding the contract
• Work completion date: 30.04.2015 for the Lublin Conference Centre and 31.05.2015 for the Marshall’s Office Building in Lublin
• Guarantee period: 60 months
• Financial terms and conditions:
  • Payment: 30 days from the delivery of the invoice to the Contracting Authority
  • Performance bond: 5% of the gross remuneration
• Liquidated damages paid by the contractor:
  • 0.01% of the gross remuneration for each day of delay in carrying out the object of the contract
  • 10% of the gross remuneration for contract withdrawal or termination for reasons attributable to the contractor
• In the case of obtaining a grant by the Contracting Authority, any act or omission by the contractor which will result in the loss of external funding will be subject to the Contracting Authority's claims against the contractor
• If the value of the damage exceeds the contractual penalties, the Contracting Authority shall have the right to claim compensation on general terms.

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