Polimex-Mostostal, along with the consortia, submitted a claim for the payment of liquidated damages in the amount of over PLN 475 million to the General Directorate for National Roads and Motorways

This is a consequence of the termination of the contracts for the construction of roads which was the fault of GDDKiA. These contracts have been terminated due to the breach of the contract by the Directorate and its failure to secure the payment.

On January 14 this year, the executive consortia involving Polimex-Mostostal terminated the contracts signed with GDDKiA and stopped their works on the sections of A1 and A4 motorways and express road S69.

Termination of the contracts was due to a failure by GDDKiA to secure the payment for the works in the total amount of more than PLN 2 billion in due time in accordance with the law, and the GDDKiA’s violation of the relevant provisions of the contracts, rejecting legitimate claims of the consortia, as well as arrears in the payment of their remuneration for work.

Therefore, the consortium partners are entitled to a claim from GDDKiA to provide the payment of penalties. Polimex-Mostostal expects that the Purchaser shall immediately comply with its financial obligations towards the executive consortia.