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League of Minnesota Cities Handbook for Minnesota Cities 10/15/2018 <br />Expenditures, Purchasing, and Contracts Chapter 22 | Page 2 <br />E. Donations of surplus equipment .................................................................................................................. 19 <br />V. Contracts in general .....................................................................................................................................20 <br />VI. Competitive bidding requirements ..............................................................................................................20 <br />A. General requirements .................................................................................................................................. 21 <br />B. Local improvements .................................................................................................................................... 21 <br />C. Competitive bidding procedures.................................................................................................................. 22 <br />D. Best value contracting ................................................................................................................................. 28 <br />E. Exemptions .................................................................................................................................................. 28 <br />VII. Emergency contracts ...................................................................................................................................30 <br />A. Cities and other political subdivisions ......................................................................................................... 30 <br />B. Procedures for making an emergency contract under the Emergency Management Act ............................ 31 <br />C. Towns (and possibly cities) ......................................................................................................................... 31 <br />D. Local sanitary districts ................................................................................................................................. 32 <br />E. Housing and Redevelopment Authorities (HRAs) ...................................................................................... 32 <br />F. Port Authorities ........................................................................................................................................... 32 <br />G. Emergency contracts with a city official ..................................................................................................... 33 <br />VIII. Purchasing consultant services ....................................................................................................................34 <br />A. Types of Consultants ................................................................................................................................... 34 <br />B. Selecting a consultant .................................................................................................................................. 36 <br />C. Bidding for consultant services ................................................................................................................... 37 <br />D. Contracting with consultants ....................................................................................................................... 37 <br />IX. Construction contracts .................................................................................................................................38 <br />A. Bid bonds ..................................................................................................................................................... 38 <br />B. Performance bond ........................................................................................................................................ 38 <br />C. Indemnification clauses ............................................................................................................................... 39 <br />D. Non-discrimination clauses ......................................................................................................................... 39 <br />E. Workers’ compensation ............................................................................................................................... 39 <br />F. Income tax withholding ............................................................................................................................... 39 <br />G. Audits .......................................................................................................................................................... 40 <br />H. Prompt payment of subcontractors .............................................................................................................. 40 <br />I. No damages-for-delay clauses ..................................................................................................................... 40 <br />X. Retainage .....................................................................................................................................................40 <br />A. Progress payments ....................................................................................................................................... 40 <br />B. Optional method .......................................................................................................................................... 41 <br />XI. Conflict of interest in contracts ...................................................................................................................43 <br />XII. Contracts with other governmental agencies ...............................................................................................44