Laserfiche WebLink
NOTICE TO BIDDERS <br />Minnesota Statutes that require prompt payment to subcontractors: <br />471.425 Prompt payment of local government bills. <br />Subd. 1. Definitions. For the purposes of this section, the following terms have the <br />meanings here given them. <br />(d) "Municipality" means any home rule charter or statutory city, county, town, school <br />district, political subdivision or agency of local government. "Municipality" means the <br />metropolitan council or any board or agency created under chapter 473. <br />Subd. 4a. Prompt payment to subcontractors. <br />Each contract of a municipality must require the prime contractor to pay any <br />subcontractor within ten days of the prime contractor's receipt of payment from the <br />municipality for undisputed services provided by the subcontractor. The contract must <br />require the prime contractor to pay interest of 1-1/2 percent per month or any part of a <br />month to the subcontractor on any undisputed amount not paid on time to the <br />subcontractor. The minimum monthly interest penalty payment for an unpaid balance of <br />$100 or more is $10. For an unpaid balance of less than $100, the prime contractor shall <br />pay the actual penalty due to the subcontractor. A subcontractor who prevails in a civil <br />action to collect interest penalties from a prime contractor must be awarded its costs and <br />disbursements, including attorney's fees, incurred in bringing the action. <br />HIST: 1985 c 136 s 5; 1995 c 31 s 1 <br />