Decision of the court for Mostostal Warszawa SA with regard to the contract for construction of the A2 motorway

The District Court in Warsaw took into account the request of Mostostal Warszawa concerning the unjustly accrued contractual penalties by theGeneral Directorate for National Roads and Motorways (GDDKiA) and deducted from the remuneration of the Consortium under the contract for the construction of the A2 motorway. The court ordered to pay to the Consortium, of which Mostostal Warszawa was a participant, the amount of PLN 29.12 million of remuneration for the completed construction works and capitalized interest accrued until to the day 20 May 2013 together with default interest in the amount of more than PLN 10 million as at 22 December 2016.

On 20 December 2016, the court of the first instance issued a judgment in favor of the consortium of companies as follows: Mostostal Warszawa, Acciona Infraestructuras, and Polimex-Mostostal (Contractor).

The court granted the request of the Consortium in its entirety, including PLN 13.69 million to Mostostal Warszawa of remuneration for the completed construction works and approx. PLN 6.16 million of default interest as of 22 December 2016. In addition, the court awarded each claimant nearly PLN 50 000 from the GDDKiA as reimbursement of the cost of the court proceedings.   

The process has concerned wrongly accrued penalties by GDDKiA for not taking into account by Contractor the notices of the Contract Engineer in the schedule of work performed under the agreement for design and construction of the A2 motorway Stryków – Konotopa, section B.

In a verbal justification, the court stated that all work was performed by the Contractor on time, in a very good quality, and that the Employer did not suffer any losses due to the fact that notices of the Contract Engineer had not been taken into account in the work schedule.

The verdict is not final.

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