MINNESOTA STATE COLLEGES AND UNIVERSITIES
Construction Contract
for Non-Advertised Bid Projects
MnSCU 120 Guidelines
Projects with an estimated construction cost of $50,000 or less may be bid without advertising.
Funding:
The College/University must take appropriate action to confirm that funds are available in an
active Cost Center for use for the project. (required prior to final contract execution)
Obtain Written Quotes:
The College/University must attempt to obtain at least two written quotes. The
College/University is to provide a written description of the proposed Project Work for
Contractors to use in preparing their quotes and a sample contract of the MnSCU120. The
College/University should establish a system that enables Contractors opportunities to bid on
Non-Advertised Bid Projects.
In accordance with Minnesota Statutes, MnSCU is subject to the prevailing wage requirements
except for contracts or work if:
•
•
The estimated total cost of completing the project is less than $2,500 and only one trade
or occupation is required to complete it, or
The estimated total cost of completing the project is less than $25,000 and more than
one trade or occupation is required to complete it.
Projects that are subject to prevailing wages must include the prevailing wage rate information
for the county of record of the project in the written description. The College/University shall
obtain this information from the following website: www.dli.mn.gov/LS/PrevWageComm.asp.
In addition, the C/U shall review the “MnSCU073 - Prevailing Wage Procedures” in the MnSCU
Project Management Manual in section 11.1.
Labor Standards and Wages:
Pursuant to Minnesota Statutes 177.41 to 177.44 and corresponding Rules 5200.1000 to
5200.1120, this project contract is subject to the prevailing wages as established by the
Minnesota Department of Labor and Industry, unless specifically exempted as by statute.
Specifically, all contractors and subcontractors must pay all laborers and mechanics the
established prevailing wages for work performed under the contract. Failure to comply with the
aforementioned may result in civil or criminal penalties.
For more information regarding prevailing wage and its application, contact:
Minnesota Department of Labor and Industry
Prevailing Wage unit
443 Lafayette Road N.
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MINNESOTA STATE COLLEGES AND UNIVERSITIES
Construction Contract
for Non-Advertised Bid Projects
MnSCU 120 Guidelines
St. Paul, MN 55155
Phone: (651) 284-5091
E-mail: dli.prevwage@state.mn.us
Web: www.dli.mn.gov
The College/University shall incorporate into its requests for proposal and all contracts the
applicable wage determinations for the contract along with contract language provided by the
commissioner of labor and industry to notify the contractor and all subcontractors of the
applicability of sections 177.41 to 177.44. Failure to incorporate the determination or provided
contract language into the contracts shall make the College/University liable for making whole
the contractor or subcontractor for any increases in the wages paid, including employment
taxes and reasonable administrative costs based on the appropriate prevailing wage due to
the laborers or mechanics working on the project. The contract must also provide that the
contracting agency shall demand, and the contractor and subcontractor shall furnish to the
contracting agency, copies of any or all payrolls not more than 14 days after the end of each pay
period. The payrolls must contain all the data required by section 177.30.
Pursuant to Minnesota Statutes Section 177.43, Subd. 3, all contractors and subcontractors shall
submit to the Owner’s contracting entity copies of payrolls that contain all the data required by
Minnesota Statutes §177.30. Contractors and subcontractors shall use Form MnSCU073 for this
purpose.
Keeping Records; Penalty:
Every employer subject to Minnesota Statutes Section 177.21 to 177.44 must make and keep a
record of:
(1) the name, address, and occupation of each employee;
(2) the rate of pay, and the amount paid each pay period to each employee;
(3) the hours worked each day and each workweek by the employee;
(4) for each employer subject to sections 177.41 to 177.44, and while performing work on public
works projects funded in whole or in part with state funds, the employer shall furnish under
oath signed by an owner or officer of an employer to the contracting authority and the project
owner every two weeks, a certified payroll report with respect to the wages and benefits paid
each employee during the preceding weeks specifying for each employee: name; identifying
number; prevailing wage master job classification; hours worked each day; total hours; rate of
pay; gross amount earned; each deduction for taxes; total deductions; net pay for week; dollars
contributed per hour for each benefit, including name and address of administrator; benefit
account number; and telephone number for health and welfare, vacation or holiday,
apprenticeship training, pension, and other benefit programs; and
(5) other information the commissioner finds necessary and appropriate to enforce sections
177.21 to 177.435. The records must be kept for three years in or near the premises where an
employee works except each employer subject to sections 177.41 to 177.44, and while
performing work on public works projects funded in whole or in part with state funds, the
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MINNESOTA STATE COLLEGES AND UNIVERSITIES
Construction Contract
for Non-Advertised Bid Projects
MnSCU 120 Guidelines
records must be kept for three years after the contracting authority has made final payment on
the public works project.
The commissioner may fine an employer up to $1,000 for each failure to maintain records as
required by this section. This penalty is in addition to any penalties provided under section
177.32, subdivision 1. In determining the amount of a civil penalty under this subdivision, the
appropriateness of such penalty to the size of the employer’s business and the gravity of the
violation shall be considered.
Contractor shall post and maintain at least one copy of the Prevailing Wage Rate Determination
Schedule in a conspicuous location on the Project site until substantial completion of the
Project.
Colleges/universities and the System Office may choose to collect payroll information strictly in
an electronic format or give contractors the option of paper or other media.
Colleges/universities and the System Office should consider their capacity to handle records in
both forms, and the anticipated ability of contractors to comply with an electronic record
requirement.
i. Incomplete Data. Colleges/universities and the System Office who are aware of
missing, late or incomplete forms should contact the contractor (preferably in writing)
and request follow-up by a specified date.
The College/University shall maintain prevailing wage payroll information for a minimum of three years
after final payment has been made on the project, or longer if required by your institution’s records
retention schedule.
Targeted Group (T.G.) and/or Economically Disadvantaged (E.D.) Subcontractor Requirements:
In accordance with M.S. 16C.16, the basis of award is that eligible certified targeted group (T.G.)
prime Bidders will receive a six percent (6%) preference and certified economically
disadvantaged (E.D.) prime Bidders will receive a four percent (4%) preference. Preference will
only be allowed if the Bidder is certified prior to the scheduled quote date. Both the targeted
group (T.G.) preference and the economically disadvantaged (E.D.) preference are applied only
to the first $500,000 of the bid. Preferences are not cumulative; the total percentage of
preference granted on a contract may not exceed the highest percentage of preference allowed
for that contract. Bidders interested in becoming a certified vendor or to verify their T.G.
eligibility and certification or E.D. certification, should refer to the state of Minnesota,
Department of Administration, Materials Management Division’s website at
www.mmd.admin.state.mn.us under “Vendor Information”, or call the division’s help line at
(651) 296-2600. The Bidder shall designate their company’s status in their quote.
Veteran-Owned/Service Disabled Veteran-Owned Contractor Requirements:
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MINNESOTA STATE COLLEGES AND UNIVERSITIES
Construction Contract
for Non-Advertised Bid Projects
MnSCU 120 Guidelines
In accordance with M.S. 16C.16 and 16C.19, eligible certified veteran-owned small businesses of
which the principal place of business is in Minnesota will receive a 6 percent (6%) preference on
the basis of award for this quote. The preference is applied only to the first $500,000 of the
quote. Preferences are not cumulative; the total percentage of preference granted on a
contract may not exceed the highest percentage of preference allowed for that contract.
Eligible veteran-owned small businesses include certified small businesses that are majorityowned and operated by a veteran and are certified by the United States Department of Veteran
Affairs as a veteran-owned small business.
Check this box if you are claiming the veteran’s preference. Provide a screen print of
the Department of Veterans Affairs website showing you are certified (firms shall
attach the certification documents with their quote).
Eligible veteran-owned small businesses must be currently certified by the U.S. Department of
Veterans Affairs prior to the solicitation opening date and time to receive the preference.
Information regarding certification by the United States Department of Veterans Affairs may be
found at http://www.vetbiz.gov .
Provide the applicable documentation above with your response. If you don’t check the box
above or you don’t provide the required documentation, you will not be considered for this
preference.
Preparation of Contract Forms and Issue Letter of Award:
After quotes have been received, the College/University determines which firm has the lowest
quote that complies with the written description of the Project. If sufficient funds are available
and the College/University decides to proceed with the Project, the College/University prepares
and forwards the contract forms and instructions to the Contractor with the Letter of Award.
See C120.20, MnSCU120 - Instructions to College/University for additional requirements.
Contractor Signature:
The Contractor must sign the Agreement first before the College/University signs. See C120.35,
MnSCU120 - Instructions to the Contractor for additional requirements.
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MINNESOTA STATE COLLEGES AND UNIVERSITIES
Construction Contract
for Non-Advertised Bid Projects
MnSCU 120 Guidelines
Insurance:
When awarded the contract, the Contractor must provide Construction Certificate of Insurance,
ICC.10, Example.
The College/University must review the completed insurance certificate(s) to confirm the
Contractor has obtained the required insurance before the College/University signs the
Agreement.
The College/University Project Manager must review the insurance certificate(s) on an ongoing
basis to ensure the insurance does not lapse. By contract, the contractor is required to maintain
coverage at the prescribed levels through construction as well as through the warranty period.
Issue Notice to Proceed:
After the Contractor has signed and returned all of the contract forms and the
College/University has reviewed and confirmed that the contract forms are correctly completed,
the College/University signs the Agreement. The College/University then issues the Notice to
Proceed letter. The Contractor shall not begin Work until the written Notice to Proceed letter
has been issued.
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