The Management Board of Mostostal Warszawa S.A. informs that today the company signed with Medical Investment Trust Sp. z o.o., a contract for “the execution of works under the general contractor for the investment involving the construction of the hotel building with apartments at the intersection of Mestwina and Międzymorze in Jurata with an underground garage with land development and technical infrastructure on the plot with registration number 326 of 0003 precincts Jastarnia".

The parties agreed the deadline for the completion of contract till 6 February 2018. 
The value of the contract amounts to PLN 14.50 million net.

Payment deadline: 30 days from the date of filing the invoice.

Guarantee periods: 60 months for the quality guarantee and guarantee for physical defects in the object of the contract.

The security for the proper performance of subject of the Agreement and claims arising from it is unconditional insurance performance guarantee of 10% of net salary. In the guarantee and warranty period the Contractor shall provide an unconditional and payable on each request bank or insurance guarantee removal of faults and defects after the final acceptance of the subject of the Agreement in the amount of 5% of the net salary.

The Management Board of Mostostal Warszawa („Company”) informs that on 10 February 2017, the Company received a suit for payment filed by Agencja Rozwoju Miasta S.A. (“Petitioner”). The Petitioner demands that the Company pays contractual penalties for delays in performance of construction work at the Czyżyny Conference and Events Centre in Cracow (currently TAURON Arena Cracow).

The value of the object of dispute amounts to PLN 20,822,156.24 along with statutory interest calculated as of 18 August 2015 until the date of payment.

The Company, having analysed the petition, rejects the claims filed by the Petitioner with respect to their grounds and their amounts; furthermore, the Company claims that there is no basis for charging contractual penalties.

The Company also informs that it commenced activities aimed at questioning the claims contained in the suit and prepared a suit against the Petitioner with respect to claims for additional work and remuneration left for payment in relation to the construction of the Czyżyny Conference and Events Centre in Cracow.