Construction of a Frito Lay plant in Poland — agreement execution
The Management Board of Budimex S.A. announces that on 12 July 2021 Budimex S.A. and Frito Lay Sp. z o.o. entered into an agreement on the construction of a Frito Lay plant in Poland, together with internal systems, including electromechanical works, land development and technical infrastructure.
The information that the Parties had concluded a letter of intent was published on 21 June 2021 in current report No 54/2021.
Contract value: PLN 343,000,000.00 net
Expected works commencement date: 2 August 2021
Expected works completion date: 31 December 2022
Guarantee period for the main works: from 5 to 10 years
Warranty period: 5 years
Payment terms: up to 60 days after the Ordering Party receives a correctly issued Contractor’s invoice covering the amounts certified in the Payment Certificate.
Bank performance bond: 10% of the net contract value
Total amount of contractual penalties payable by the Contractor: 10% of the net contract value
The contractual penalties shall not exclude the Ordering Party’s right to claim payment of supplemental damages from the Contractor in accordance with the general provisions of the Civil Code, including for damage actually suffered and lost profits.
Other terms and conditions of the contract do not differ from the market standards.
The value of the agreement exceeds the threshold of PLN 167,645 thousand net.