Investor relations

Legal basis: Article 17(1) of MAR – confidential information

Topic: Conclusion of a contract for construction works.

Content of the report:

J.W. Construction Holding S.A. with its registered office in Ząbki (‘Company’) reports that on 14 July 2017 a contract was concluded between the Company as Ordering Party and J.W. Construction Sp. z o.o. with its registered office in Ząbki - an entity in 100 % controlled by the Company (‘Contractor’) whose subject-matter was comprehensive performance — using the Contractor’s materials, under the system of general performance — of construction and installation works for multi-family buildings A2, B2 and B3, including land development, infrastructure with respect to, inter alia: surface of roads, parking lots, pavements, fence according to the building permit, the as-is design and green areas and elements of land development of the area at the Nowe Tysiąclecie residential subdivision, stage 3, in Katowice, and obtaining the final and binding decision on occupancy permit, according to the Construction and Architectural Design, design documentation and refurbishing standards (Contract).
The date for completion of all works specified in the contract, including obtaining the occupancy permit, was set for 28 June 2019. The remuneration for the performance of the Contract was set for PLN 71,778,027.00 (in words: seventy one million seven hundred and seventy-eight thousand twenty-seven Zloties) + VAT at the applicable rates, as lump-sum remuneration based on the scope of works. The remuneration of the Contractor will be payable on the basis of invoices received by the Company, issued on the basis of acceptance reports on the works for the elements following from the Material and Financial Schedule, which forms an appendix to the Contract, which works are accepted by the Company.
The Contractor, to secure the Company’s claims for proper performance of the Contract, will issue and submit to the Company a guarantee bill for PLN 1,794,450.68 (in words: one million seven hundred ninety four thousand four hundred and fity 68/100 Zloties). The bill will secure proper performance of the contract from the date of take-over of the construction site until the date of final acceptance.
The Contractor will provide the Company with a 60-month guarantee on the subject-matter of the Contract, whose term starts running on the date of final acceptance and submission of the as-is documentation, except for equipment and materials for which the manufacture provided a guarantee for more than 60 months. To secure the Company’s claims for proper performance of the contract, a security deposit will be retained from each invoice (3 % on the net value of such invoice), and such security deposit will be returned to the Contract after the expiry of the period of the guarantee and of the implied guarantee for defects. At the Contractor’s request, the security deposit may be converted into a bank guarantee.
The parties agreed that the Company with be entitled to liqidated damages of 5 % on contractual remuneration in the case the Contract is terminated for reasons attributable to the Contractor. The Company may pursue supplemental damages, transfering the amount of restricted liquidated damages to the amount of actual damage.
The Company is entitled to liquidated damages from the Contractor for each day of delay in the completion of works at the rate of 0.1 % on the net value of the remuneration for the delayed stage, for each day of delay, and the liquidated damages for each day of delay in the removal of defects and flaws during the term of the guarantee and implied guarantee for defects at the rate of 0.1 % of the value of the element in which the defect occurred.
To any other extent, the terms of the Contract do not differ materially from the terms generally applied in similar contracts.
The basis for submission of information on conclusion of the Contract is relevance to the Company’s operations due to the value of works contemplated in that Contract.