State infrastructure developer cancels road-building contract with Vegyépszer-led consortium
Hungary's National Infrastructure Development Company (NIF) has cancelled a road construction contract with a consortium of companies led by Vegyépszer, NIF told MTI on Thursday, confirming a report by gazdasag.hu.
The consortium started the construction of the 9.2km road in western Hungary in March 2010 and was to have completed the stretch by July 29, 2011. Because the consortium failed to meet the deadline, NIF cancelled the contract and initiated the call-down of Vegyépszer's HUF 397 million indemnity, 15pc of the value of the project.
NIF already paid the consortium about HUF 267 million plus VAT for work completed.
NIF will call a new tender this year to complete the road, which could be finished by the end of 2013.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.