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Bonds & Retainage
Overview
Each solicitation issued by the Contract and Analysis Services (CAS) 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 and Ramsey County typically require 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 and Ramsey County will accept three forms of securities:
  • A performance and payment bond
  • An irrevocable Letter of Credit
  • A Cashier's Check (made payable to Saint Paul or Ramsey County)

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 and Ramsey County contracts where subcontractors are likely.

Retainage
Pursuant to the Minnesota Statute Section 15.71 - Public Contracts; Definitions, the City of Saint Paul and Ramsey County typically withhold 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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