The Management Board of Mostostal Warszawa S.A. announces that on 10 October 2016, the Company signed a contract with HENNIGER INVESTMENT Spółka Akcyjna for construction of a residential building with service functions on the ground floor, an underground garage, with unfinished interiors, infrastructure and area management, area levelling and construction of access roads, networks and any connections as part of an investment under the working name of “KBR_CE1” (second stage of the “Mieszkaj w Mieście” housing estate).

The deadline for implementation of the object of the contract was determined at 18 months from the date of signing the contract by the Parties, however not later than 6 April 2018.

The value of the contract amounts to: PLN 34.25 million net.

Payment deadline: 7 days from presentation of an invoice along with required documents.

Warranty period: 72 months of quality guarantee and warranty for defects in the performed work, excluding the building structure, tightness of the roof and insulation of the underground garage for which the period of warranty amounts to 120 months.

Performance bond: deposit or bank guarantee constituting 10% of the accepted net contractual amount.  

The Management Board of Mostostal Warszawa S.A. informs that yesterday it received a justification for judgment of the Regional Court in Warsaw regarding Mostostal Warszawa SA and Acciona SA claims against the State Treasury General Director for National Roads and Highways in Warsaw about the legal shape of relationship, determination and payment related to the agreement for the construction of the A4 highway Tarnów-Rzeszów on the section from Rzeszow Central node to Rzeszow East node.

The court awarded for the plaintiffs the amount of PLN 11.298.298,14 together with statutory interest for the delay with amount claimed by the plaintiff in the amount of PLN 207.530.327,00. Court concluded that there was no basis to charge plaintiffs a contractual penalty and deduct the amount from the remuneration due for the execution of works.

Judgment is not legally binding.

The Issuer will analyze the content of a judgment for possible appeal.