Current report no. 8/2021 Date of issue: 2021-02-16
Abbreviated name of the Issuer: DEKPOL S.A.
Subject: Conclusion an agreement with 7R S.A. for general contracting of investments in Szczecin Legal basis: Article 17 Section 1 MAR - confidential information.
Content of report:
Management Board of Dekpol S.A. ("Issuer") informs that on 16th of February 2021, it was informed that 7R S.A. had signed ("Ordering Party") the agreement with the Issuer's subsidiary - Dekpol Budownictwo sp. z o.o. ("Contractor") for the performance in Szczecin, in the general contracting system, in the "design and build" formula, comprehensive construction works and a full range of construction and installation works including the delivery of materials and equipment ("Agreement"), the result of which will be "turnkey" construction of two production and warehouse facilities with office and social facilities along with the necessary technical infrastructure ("Investment") and reconstruction of the road system.
Under the Agreement, the Contractor undertook to develop designs - replacement construction and executive designs, and to obtain all required approvals and permits for the Investment, including the decision to amend the building permit and obtain the final use permit for the Investment.
The deadline for the implementation of I stage of the Investment expires in May 2021, and in case of the implementation of II stage of the Investment, it was set for 6 months from the date of selecting and making the site available by the Ordering Party, while the Ordering Party is entitled to make the above-mentioned selection within 12 months from the conclusion of the Agreement. If the Ordering Party fails to select in the above-mentioned period, this scope is considered excluded from the Agreement.
The flat-rate net remuneration of the Contractor for the implementation of the Investment amounts to a total of approx. 10% of sales revenues of the Dekpol Capital Group for 2019, including approx. 6% for stage I of the Investment. The remuneration may change in cases specified in the Agreement, including, inter alia, as a result of the Ordering Party's exclusion of some works constituting no more than 10% of the remuneration or an order for additional or replacement works.
The contract contains provisions regarding contractual penalties due in the case of, inter alia, failure to meet the deadlines resulting from the Agreement, but not more than 12% of the remuneration. In addition, the parties to the Agreement have the right to demand the payment of a contractual penalty in the amount of 10% of the remuneration in the event of withdrawal or partial withdrawal from the Agreement due to the fault of the other party. The total amount of contractual penalties may not exceed 30% of the remuneration. The parties have the right to claim supplementary compensation for damages on general principles up to the full amount of the damage suffered. The Agreement contains provisions regarding the Ordering Party's right to withdraw from the Agreement in cases specified in the Agreement, without legal and financial consequences, subject to settlement with the Contractor of documented costs reasonably incurred in order to perform the Agreement.