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Bonds & Retainage
Each solicitation issued by the Procurement office describes the requirements vendors are expected to meet, such as:
  • Specific performance standards for the commodity, service, or project
  • A set of general terms and conditions that apply to all contracts
  • And more...

Bid Bonds
Bid bonds are required to assure that the successful bidder will:
  • Sign a contract according to the bid specifications at the price offered
  • Supply any performance bonds, insurance, or other documents required by law or the specification

Note: Saint Paul typically requires a bid bond for projects of $50,000 or more.

Performance & Payment Bonds
The Minnesota Statute Section 574.26 - Contractors' Bonds for Public Work requires performance and payment bonds to be posted for any contract on a public work in the amount of $75,000 or more. Bonds may be required for contracts of less than that amount, but are discretionary.

Saint Paul will accept three forms of securities:
  • A performance and payment bond
  • An irrevocable Letter of Credit
  • A Cashier's Check (made payable to the City of Saint Paul)

Prompt Payment to Subcontractors
The Minnesota Statute Section 471.425 - Prompt Payment of Local Government Bills requires prime contractors to pay any subcontractor within ten days of the prime contractor's receipt of payment from a local government for undisputed services provided by the subcontractor. This provision is included in all Saint Paul contracts where subcontractors are likely.

Pursuant to the Minnesota Statute Section 15.71 - Public Contracts; Definitions, the City of Saint Paul typically withholds 5% of the total amount invoiced on a progress payment as retainage on contracts for public improvements.

Additional Information
Vendors who have questions about the requirements on a specific bid or Request for Proposal (RFP) should contact the buyer referenced on the bid / RFP cover form.

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