The Management Board of the Poznańska Korporacja Budowlana Pekabex S.A. (“the Issuer”) hereby informs that today Pekabex Bet S.A. ( a company wholly-owned by the Issuer) concluded a contract for the construction and assembly works (“Contract”) previously signed by PORR S.A. company (“the Contracting Party”). The subject of the contract is making a prefabricated construction for an investment called “Business Garden Poznań II- Poznań, ul. Bułgarska/Łubieńska/Pastelowa”.
Payment due for the correct completion of works included in the Contract was established at PLN 21,107,000.00 net plus VAT according to the regulations in force. The commencement of work shall take place on 10 July 2017. The subject of the Contract shall be completed in stages, according to the agreed schedule, and the date of completion was agreed to be 11 May 2018. The Contract includes standard provisions concerning contractual fines for this type of agreements: 0.3% of the building value (construction stage) which is subject to delay for each day of the delay against the deadlines for intermediate stages (intermediate completion dates), as well as 0.2% of net payment for each day of delay against the completion day of the whole project. The parties agreed on the upper limit of the contractual fines to be 10% of net payment. Moreover, if the Contracting Party decides to withdraw from the agreement due to reasons attributable to Pekabex Bet S.A., then Pekabex Bet S.A. will need to pay a contractual fine in the amount of 10% of net payment. Also, the Contracting Party shall have the right to seek compensation for damage in the amounts exceeding the contractual fine. If, on the other hand, Pekabex Bet S.A. decides to withdraw from the contract due to reasons attributable to the Contracting Party, the Contracting Party shall pay a contractual fine in the amount of 10% net payment. Maturity date for invoices is 30 days from the day a verifiable invoice is submitted. Pekabex Bet S.A. shall secure due performance of the contract in the amount which is 5% of the value of net payment with validity period being 30 days longer than the date set to be an investment acceptance date by the Investor (which is 15 February 2019), but no later than until 15 May 2019. Also, Pekabex Bet S.A. shall deliver to the Contracting Party defects liability guarantee amounting to 5% of the value of net payment valid for 5 years plus 60 days counting from the date the due performance guarantee expires. Pekabex Bet S.A. issued to the Contracting Party a quality guarantee and warranty for the period starting from the day the investment is accepted by the Contracting Party and lasting for 10 years and 60 days.
Other provisions of the contract are no different from the standard provisions in this type of contracts. The Contract is deemed to be significant as the total value of agreements concluded with the Contracting Party exceeds 10% of the value of consolidated capitals of the Issuer and amounts to PLN 36,781,891.54 net, and because it has a significant and positive influence on the financial situation of Pekabex Bet S.A. company, and, as a result, also on the financial situation of Pekabex Group.