MINNESOTA STATE COLLEGES AND UNIVERSITIES

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1 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: In addition, the C/U shall review the MnSCU073 - Prevailing Wage Procedures in the MnSCU Project Management Manual in section Labor Standards and Wages: Pursuant to Minnesota Statutes to and corresponding Rules to , 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. C Page 1 of 5 7/1/16

2 St. Paul, MN Phone: (651) Web: 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 to 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 Pursuant to Minnesota Statutes Section , 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 Contractors and subcontractors shall use Form MnSCU073 for this purpose. Keeping Records; Penalty: Every employer subject to Minnesota Statutes Section to 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 to , 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 to The records must be kept for three years in or near the premises where an employee works except each employer subject to sections to , and while performing work on public works projects funded in whole or in part with state funds, the C Page 2 of 5 7/1/16

3 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 , 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 and certified economically disadvantaged (E.D.) prime Bidders will receive a six percent (6%) preference. Preference will only be allowed if the Bidder is certified prior to the scheduled bid opening. Both the targeted group (T.G.) preference and the economically disadvantaged (E.D.) preference are applied only to the first $1,000,000 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 under Vendor Information, or call the division s help line at (651) The Bidder shall designate their company s status in their quote. C Page 3 of 5 7/1/16

4 Veteran-Owned/Service Disabled Veteran-Owned Contractor Requirements: 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 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. C Page 4 of 5 7/1/16

5 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. C Page 5 of 5 7/1/16

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