Current report no 56 / 2014

Current report no 56 / 2014 - 10 July 2014 / 00:00

Design and construction of a new power unit at Turów power plant - a new contract for Budimex SA

The Management Board of Budimex SA announces that on 10 July, 2014 the consortium of Mitsubishi Hitachi Power Systems Europe GmbH (leader, 55.38%), Budimex SA (partner, 22.31%) and Tecnicas Reunidas SA (22.31%) signed a turnkey contract for design and construction of a power unit at Turów power plant with PGE Górnictwo i Energetyka Konwencjonalna SA with its registered office in Bełchatów.

  • Contract value: PLN 3,250,000,000.00 net.
  • Work commencement date: issue date of the commencement order the Contracting Party.
  • Work completion date: not later than 56 months following the issue of the commencement order the Contracting Party.
  • Primary warranty period: 24 months.
  • Extended warranty period: 36 months on building structures and thermal and acoustic insulation of buildings and structures; 48 months on chemical resistant lining, anti-corrosion, heat-resistant and fire-resistant protection of structural elements of buildings and structures
  • Financial terms and conditions:
    • Advance payment: 10% of the net contract value,
    • Payment: 30 days
    • Performance bond: 10% of the gross contract value.
  • Maximum amount of penalties paid by the Contractor:
    • 10% of the net contract value for delay,
    • 15% of the net contract value for non-compliance with relevant technical parameters,
    • 25% of the net contract value for both delay and non-compliance with relevant technical parameters.
  • In special circumstances stipulated in this contract, the Contracting Authority is entitled to claim supplementary damages in excess of the amount of the agreed contractual penalty on general terms.
  • In total, the maximum liability of the parties in respect of non-performance or improper performance of the contract or tort liability will not exceed 100% of the contract value. The above limits shall not apply to the Contractor’s liability pursuant to Article 435 of the Polish Civil Code (liability for damage caused by the operation of an enterprise or an establishment set in motion by natural forces) and Article 436 of the Polish Civil Code (liability for damage by a possessor of a vehicle propelled by natural forces).
  • The Parties also signed Annexe No. 1 to the contract whose provisions constrain risks related to the possibility that other bidders participating in the tender procedure file complaints with the regional court. Following the signing of the Annexe, the deadline for the Contracting Authority to issue a commencement order has been extended until 31 December, 2014.

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