City Hall withdrew from contract with Polimex-Mostostal

The City Hall of Katowice denounced the agreement with Polimex-Mostostal. The building company was contracted in October last year to erect the International Convention Center.

The contract was withdrawn as a result of inadequate performance of the financial and practical schedule, and delay of the construction work that makes impossible to deliver the building according to the contracted completion date.

The City Hall will claim a compensation from Polimex-Mostostal – 5 % of the contract’s total gross value (PLN 252,7 million). The company already announced that will offer the City Hall a composition agreement.

If the withdrawal is effective, the contract will be dissolved within 14 days since the day of receiving the statement by Polimex-Mostostal (19th of September). Then, Katowice will issue a new tender to choose a prime contractor of the venue. The City Hall expects the construction work would be restarted in the first quarter of 2013.

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