We are often asked for a list of the most important statutes relating to construction or for citations to these statutes. Therefore, this month\u2019s Briefing Paper provides a brief discussion of and citations to the most important statutes relevant to construction. For a more detailed description of any particular statute, do not hesitate to contact us.<\/p>\n
1. Mechanic’s Liens<\/span>. Minn. Stat. \u00a7\u00a7 514.01-514.17 (liens must be filed within 120 days after doing last work; lien foreclosure actions must be brought within one year after last day of work).<\/p>\n 2. Payment Bonds<\/span>. Minn. Stat. \u00a7\u00a7 574.26-574.32 (claims against a bond on state projects must be filed within 120 days of last work); Miller Act, 40 U.S.C. \u00a7 270a-f (on federal projects, bond claims must be filed within 90 days of last work).<\/p>\n 3. Prevailing Wages<\/span>. Minn. Stat. \u00a7\u00a7 177.42-177.44 (prevailing wages are payable on state-funded contracts; a contractor may be liable if a subcontractor fails to pay them; new rules at Minn. R. 5200.1105-06 explain what prevailing wages are due for trucking to and from job sites).<\/p>\n 4. Progress Payments and Retainages<\/span>. Minn. Stat. \u00a7 337.10, subd. 4 (private contracts \u2013 monthly progress payments are required unless contract provides otherwise); Minn. Stat. \u00a7 15.72 (public contracts \u2013 monthly payments required unless contract says otherwise); Minn. Stat. \u00a7 15.73 (security in lieu of retainage \u2013 contractor may deposit bonds or securities on public projects and collect interest on the deposit instead of having public agency hold retainage).<\/p>\n 5. Prompt Payments<\/span>. Minn. Stat. \u00a7 337.10, subd. 3 (private contracts \u2013 contractors must pay subcontractors for undisputed services within ten days after receipt of payment; contractors who fail to do so may be liable for 18% interest and attorney\u2019s fees); Minn. Stat. \u00a7 471.425, subd. 4a (municipalities must pay undisputed amounts to vendors within 35 days (or 45 days for some municipalities) or may be liable for 18% interest and attorney\u2019s fees); Minn. Stat. \u00a7 16A.1245 (same for state agency contracts); Minn. Stat. \u00a7 137.36 (same for university contracts).<\/p>\n 6. Statutes of Limitation<\/span>. Minn. Stat. \u00a7 541.051 (general \u2013 two years after discovery of injury or accrual of cause of action, and no more than 10 years after substantial completion); Minn. Stat. \u00a7 3.751, subd. 5 (most state agency contracts \u2013 90 days after the state furnishes the contractor with a final estimate under the contract); Minn. Stat. \u00a7 161.34, subd. 2 (state trunk highway projects \u2013 90 days after state furnishes final estimate, or, at the contractor\u2019s election, six months after the contract work has \u201cbeen in all things completed\u201d).<\/p>\n 7. Competitive Bidding<\/span>. Over 30 Minnesota statutory provisions, e.g. Minn. Stat. \u00a7 471.345 (cities, towns, and counties \u2013 contracts over $35,000 for municipalities of less than 2,500 population, and $50,000 for all others, must be competitively bid), Minn. Stat. \u00a7 161.32 (Minnesota Department of Transportation \u2013 contracts over $150,000 must be competitively bid); 41 U.S.C. \u00a7\u00a7 253 et seq. (federal contracts must be competitively bid).<\/p>\n 8. Indemnity Agreements, Anti-Indemnity Contracts, and Agreements to Insure<\/span>. Minn. Stat. \u00a7\u00a7 337.01-337.05 (indemni-fication agreements are unenforceable except as to negligent or otherwise wrongful acts, or in connection with certain environmental laws, but agreements to insure are generally valid and enforceable).<\/p>\n 9. Application of Laws of Other States<\/span>. Minn. Stat. \u00a7 337.10, subd. 1 (provisions subjecting a contract to the laws of another state, or requiring litigation or arbitration to be held in another state, are invalid).<\/p>\n 10. Anti-Waiver Agreements<\/span>. Minn. Stat. \u00a7 337.10, subd. 2 (provisions requiring waiver of rights to mechanic\u2019s liens or payment bond claims before payment are invalid).<\/p>\n This discussion is generalized in nature and should not be considered a substitute for professional advice. \u00a9 FWH&T<\/em><\/span><\/p>\n","protected":false},"excerpt":{"rendered":" We are often asked for a list of the most important statutes relating to construction or for citations to these statutes. Therefore, this month\u2019s Briefing Paper provides a brief discussion of and citations\u2026<\/p>\n","protected":false},"author":7,"featured_media":309,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7,5],"tags":[],"class_list":["post-508","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-briefing-papers","category-dean-b-thomson"],"acf":[],"yoast_head":"\n