Laserfiche WebLink
27 | Page <br /> <br />Any change order that does not exceed $50,000 may be approved by the City Manager or a <br />Department head specifically designated by the City Manager. Any change order that exceeds <br />$50,000 must be approved by City Council. In an emergency the City Council may enter into <br />contracts and incur obligations necessary to combat the disaster by protecting the health and <br />safety of persons and property and by providing emergency assistance to the victims of the <br />disaster without complying with the laws relating to purchasing and contracting. <br /> <br />Retainage <br />A City of Brooklyn park will reserve an amount as retainage from any progress payment on a <br />public contract for a public improvement. The amount may not exceed 5 percent of the <br />payment. The city may reduce the amount of the retainage and may eliminate retainage on <br />any monthly contract payment if the work progresses satisfactorily. <br /> <br />Prompt Payment to Subcontractors <br />City contracts that involve a prime contractor must require the prime contractor to pay <br />subcontractors within ten days of the prime contractor’s receipt of payment from the city for <br />undisputed services provided by the subcontractor. The contract must require the prime contractor <br />to pay interest of 1.5 percent per month or any part of a month to the subcontractor on any <br />undisputed amount not paid on time. <br /> <br />Performance and Payment Bonds (Contractor’s Bond) <br />For contracts in excess of the State Statute MSS 471.345 that include labor (ex. road construction <br />and the purchase and installation of playground equipment) a performance and payment bond in <br />an amount not less than the contract price is required from the vendor. The required performance <br />bond benefits the city by ensuring that the work is completed according to the terms of the contract, <br />while the required payment bond benefits subcontractors and people who provide labor and <br />materials, by seeing that their claims for labor and materials are paid. 18 When the public work <br />contract is let, the amount of the bond needs to be equal to the contract price. If the contract price <br />increases due to change orders, unforeseen conditions, cost overruns or any other reason after the <br />contract is signed, the City Council has the option of increasing the amount of the contractor’s <br />bond. Consideration may be given for the percentage of the contract that is complete in relation to <br />the contractor’s bond and the increase in the contract price. Additional Information on Performance <br />and Payment Bonds (Contractor’s Bond) is available in the state statues below <br /> 18 See Public Contractors’ Performance and Payment Bond Act, Minn. Stat. §§ 574.26-.32. <br /> <br /> <br /> <br />Provisions Included in all Contracts (Procurement Standards) <br />It is the policy of Brooklyn Park to include all of the following provisions, as applicable, in all <br />contracts (including small purchases) with contractors and sub-awards: <br /> <br />1. Remedies: <br />All contracts in excess of the small purchase threshold fixed at 41 U.S.C. 403(11) (MSS <br />471.345) shall contain contractual provisions or conditions that allow for administrative, <br />contractual, or legal remedies in instances in which a contractor violates or breaches the <br />contract terms. <br />