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Construction Contracts

Contracts less than $10,000 may be made either upon quotation or in the open market. If quotations are obtained by phone, they must be followed up in writing by the contractor. When at all feasible, at least two quotations shall be obtained.

Contracts of $10,000 to $25,000: If a project is estimated to exceed $10,000 but less than $25,000, competitive bids will be taken by the Director of Purchasing. Depending upon the project and circumstances, bids will be taken either by an informal or sealed bid process. 

Contracts Exceeding $50,000: If a project is estimated to exceed $50,000, formal sealed bids shall be solicited through public notice by the Director of Purchasing. Bid bond and Performance/Payment bonds shall be required. Bid bonds for projects over $50,000 shall be five percent of the bid.

Contracts Exceeding $100,00: When a contracts is in excess of $100,000 and the contractor has had more than 40 full-time employees in the past year, the contractor must obtain a certificate of affirmative action plan compliance from the State of Minnesota, Department of Human Rights. The Director of Purchasing will be responsible for obtaining the Certificate of Compliance from the contractor.

Proof of Insurance

Under no circumstances shall a contractor be permitted on SMSU campus grounds for construction or repairs without first providing evidence of insurance naming the Southwest Minnesota State University as an “additional insured” with the following minimum levels of coverage:

  • Public liability in the following amounts:
    • Bodily Injury Liability $300,000/$1,000,000
    • Property Damage Liability $300,000/$1,000,000
    • Automobile Public Liability $1,000,000 Single Limit
    • Workers’ Compensation $100,000 Single Limit 


Questions related to Purchasing or Contracting should be directed to the Purchasing Clerk, Christy Johnson, at extension 6215 or

Last Modified: 6/6/22 5:04 PM | Website Feedback