Trakcja PRKiI S.A. stand on the agreement on the development of voivodeship road no. 548 at the Stolno- Wąbrzeźno section

1. The Company believes that the agreement concluded on 19.04.2017 remains in force and is still binding for the Parties.
2. Trakcja PRKiI S.A. is of the opinion that the continuation of works on the grounds of the aforementioned agreement is the most favourable solution from the point of view of managing public resources and minimising the period of inconveniences for drivers and inhabitants during works.
3. After starting the contract, a series of problems were disclosed, ignoring of which by the Contractor would have been unprofessional and, above all, unfavourable for the Tenderee, taking into consideration the invalid assumptions adopted for performance of works:

a. the traffic forecast of 2007;

b. the documentation of 2010;

c. the construction permit of 2012.

As of then, a significant increase has been observed in the traffic at the said section, among others, as a result of opening the A1 motorway or facilities, where the conducted activity results in the increasing roads’ load. Uncritical performance of roads on the grounds of the forwarded documentation would result in developing a road not meeting the current traffic parameters, a faster damage thereof and the necessity to continuously conduct repairs and, in consequence, questioning by the Tenderee the quality of performed works in the guarantee period.

4. Upon awarding the tender and the documentation analysis we have disclosed that the Technical Terms and Conditions indicated in the documentation drawn up by the Tenderee are different than the ones currently binding. The above concerned, in particular, the Technical Guidelines regarding WT-2 mineral-asphalt blends and the catalogue of typical flexible and semi-rigid constructions. Performance of works in compliance with the terms and conditions received from the Tenderee would mean breaching provisions and would constitute grounds for questioning performed works at the hand-over stage!
5. The necessity to adjust the project to the currently binding technical terms and conditions occurred, which had been done by the Contractor and accepted by the Tenderee. The amendment to the project resulted in increasing the value of works by approximately PLN 24 million. A lack of decision in this matter constitutes one of the reasons for limiting works.
6. In 2018 the Contractor wanted to meet the Tenderee’s expectations and avoid withholding works, and, in consequence, additional extension of the execution period, performed additional works of a total value of PLN 6 million, which were received by the Tenderee and thus, the validity of performance thereof was confirmed. However, now the Tenderee refuses payment.
7. Despite many months of attempts to start negotiations with the Tenderee, including the voivodeship authorities, regarding the solution to the aforementioned problems, the Contractor has not obtained any relevant guidelines. Finally, due to the lack of the Tenderee’s decision, the Contractor, in compliance with the contractual provisions, had the right to suspend works.
8. On 5 April this year the Company received a letter from the Tenderee - ZDW in Bydgoszcz entitled “Termination of the Agreement”, which is, in our opinion, legally ineffective, since the grounds for termination are implicitly void. Furthermore, in the course of the Contract’s execution no prerequisites entitling the Tenderee to terminate the contract occurred and there are certainly no grounds for terminating the contract due to the contractor’s fault.
9. In reply to the aforementioned letter, on 16 April the Contractor sent to the Tenderee the explanation, addressing in detail all objections, to which the Tenderee has not replied.
10. The Company expresses its willingness to immediately start negotiations aimed at stipulating the terms and conditions of finishing the contract and resuming performance of works.