Current report no 78 / 2010

Current report no 78 / 2010 - 12 November 2010 / 00:00

Construction of the S17 express road, section Kurów - Lublin - Piaski. A new contract for Budimex SA

The Management Board of Budimex SA announces that on 12 November 2010 the consortium of Budimex SA (leader) and Ferrovial Agroman SA concluded a contract with the Lublin-based division of the General Directorate for National Roads and Motorways on “Construction of the S-17 express road, the section Kurów – Lublin – Piaski. Task no. 5: Expansion of national road no. 17 (12) at the section of Lublin (Witosa junction) – Piaski (the beginning of the ring-road) from km 616 + 616 to km 630 + 400. Task no. 5a: Construction of G-rated ul. “Projektowana” (currently Al. NSZZ “Solidarność”), section from Al. Witosa (together with the junction) in Lublin to Al. Lotników Polskich in Świdnik.

  • Contract value: PLN 327,148,469.60 net
  • Commencement date: no later than 30 days from the date of concluding the contract
  • Deadline: 24 months from the date of concluding the contract
  • Guarantee period: 60 months from the date of the last Take-over Certificate
  • Financial conditions:
    • Advance payment: 10% of the contract value
    • Payment: 30 days from the date of submitting the invoice to the Ordering Party
    • Bank guarantee of successful execution – 5% of the approved gross contractual amount
  • Contractual penalties paid by the Contractor:
    • For exceeding the deadline for the completion of works – 0.01% of the gross approved contractual amount per each day of delay;
    • For failure to perform the Required Minimum Performance on time – 0.01% of the gross approved contractual amount per each day of delay;
    • For withdrawal from the Contract for reasons attributable to the Contractor – 10% of the gross approved contractual amount;
    • For exceeding the deadline for the submission of: the schedule, the report, detailed calculations of unit prices – PLN 5,000 per each day of delay;
    • For exceeding the deadline to remove defects and to perform minor overdue work specified in the Take-over Certificate or for failure to remove defects identified during the warranty period by the date specified by the Engineer/the Contracting Authority – 0.01 % of the gross approved contractual amount per each day of delay;
    • For failure to clear up the construction site – 0.01% of the gross approved contractual amount per each day of delay.
  • Penalties paid by the Contracting Authority:
    • The Contracting Authority will pay a contractual penalty of 10% of the gross approved contractual amount to the Contractor for withdrawal from the contract for reasons attributable to the Contractor.
  • The Parties reserve the right to supplementary compensation, which carries the amount of contractual penalties equal to the amount of damage actually suffered.

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