Report No. 29_Contract Termination by Mostostal Warszawa S.A.

The Management Board of Mostostal Warszawa S.A. ("Company", "Contractor") hereby informs that on 2 July 2019, the Company terminated the unexecuted part of the agreement with the District Infrastructure Management Board of in Gdynia ("the Employer") on 17 October 2016 with subsequent annexes for investment project entitled: "Reconstruction of building no. 20 for a staff and office building with a kitchen, canteen, food warehouse and a check-in room in the Redzikowo military complex, task No. 13746" (Agreement No. 682 / IV / FIN / 2016 with annexes).

 

The Company announced the conclusion of the Agreement in the current report No. 29/2016 on 17 October 2016.

 

The Contractor based the termination of the Agreement, inter alia on: art. 649 (4) § 1 C.C., art. 491 § 1 C.C. in relation § 11 clause. 2 Agreements, art. 654 C.C., art. 640 C.C. in relation to art. 656 § 1 C.C., art. 492 (1) C.C.

The actual grounds of withdrawal were:

1. Failure to submit by the Employer proper execution warranty for remuneration due to the Contractor for construction works performed.

2. Employer’s delays in remuneration payment for the Contractor, despite a prior payment requests and appointment of an additional deadline.

3. Lack of proper cooperation on the part of the Employer with the Contractor by not collecting properly performed works and not signing annexes for additional works.

4. Declaration of the Employer about non-performance by not paying invoice in the amount due to the Contractor.

The value of the contract on the basis of the contract together with the annexes was PLN 22.00 million gross, whereas the progress of works as of 30 June 2019 amounted to approximately 57.95%.

 

Legal basis:

Article 17 paragraph 1 MAR - confidential information.

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