Conclusion of an agreement with ROMGOS GWIAZDOWSCY sp. z o.o. for subcontracting the investment: Construction of the DN1000 Gustorzyn-Wronów gas pipeline

The Management Board of STALPROFIL SA informs that on April 12, 2022, it was informed that ROMGOS GWIAZDOWSCY sp. z o.o. had signed an Agreement between STALPROFIL SA (Subcontractor) and ROMGOS GWIAZDOWSCY sp. z o.o., based in Jarocin (General Contractor), the subject of which is the subcontracting of the Investment, consisting in the comprehensive performance of construction and assembly works of the DN1000 MOP 8.4 MPa gas pipeline section from Gustorzyn-Wronów, stage II Leśniewice - Rawa Mazowiecka, along with accompanying facilities and infrastructure necessary for its operation (Subject of the Agreement).
In accordance with the concluded Agreement, STALPROFIL SA by December 4, 2023 will build a section of the above-mentioned gas pipeline with a length of approx. 50 km. The net value of the Agreement is PLN 46.3 million.
In order to secure the General Contractor's claims for non-performance or improper performance of the Agreement, the Subcontractor is obliged to provide a cash or non-cash security (guarantee document), including the removal of defects and faults during the warranty and guarantee period, in the amount of 5% of the total gross remuneration.
The General Contractor is entitled to charge the Subcontractor with contractual penalties, including delay in the Final Acceptance of the Subject of the Agreement in relation to the date specified in the contract between the General Contractor and the Ordering Party (OGP GAZ-SYSTEM SA in Warsaw):
- during the first 30 days of delay - 0.02% of the net remuneration for each day of delay started,
- in the event of a delay exceeding 30 days - 0.04% of the net remuneration for each commenced day of delay falling after the lapse of 30 days of delay.
The sum of contractual penalties charged by the General Contractor for the delay in making the Final Acceptance in relation to the deadline specified in the contract between the General Contractor and the Ordering Party may not exceed 15% of the net remuneration.
In the event of withdrawal from the Agreement by any of the Parties for reasons attributable to the Subcontractor, the General Contractor is entitled to charge the Subcontractor with a contractual penalty in the amount of 20% of the net remuneration indicated in the Agreement.
The total amount of contractual penalties that may be due to the General Contractor may not exceed 20% of the net remuneration indicated in the Agreement.
The General Contractor has the right to claim supplementary compensation in excess of the amount of contractual penalties stipulated in these Agreements, on the general principles of the Civil Code.
The concluded contract should, during its implementation, significantly increase the revenues generated by the Company in the segment of infrastructure of gas transmission networks. This segment is served by the self-balancing Branch of STALPROFIL SA in Zabrze, which is responsible for the performance of construction works under the Agreement.