How to sell to Minnesota counties

Minnesota has 87 counties. Counties follow the Uniform Municipal Contracting Law (Minn. Stat. 471.345), which defines "municipality" to include counties and overrides inconsistent dollar limits in other laws. County-specific notice, award and bond rules sit in Minn. Stat. 375.21. Hennepin County is exempt from 375.21 and follows its own statutes. The thresholds last changed in 2018 and are not indexed for inflation.

At a glance

Topic	Rule	Source
Who buys	County board of commissioners	Minn. Stat. 375.21
Goods and services	Open market or quotes to $25,000; quotes or bids to $175,000; sealed bids above	471.345
Construction	Same tiers; best-value RFP and construction manager at risk allowed	471.345; 375.21
Notice	Qualified legal newspaper: 2 weeks; 3 weeks for road, bridge, building	375.21
Award	Lowest responsible bidder; best value option for construction	375.21; 471.345
Bid security	Not confirmed; check the solicitation	—
Bonds	Performance and payment bonds at 100% of contract over $175,000	574.26; 375.21
Prevailing wage	State-funded projects; counties may adopt their own	177.43; 471.345
Retainage	Max 5%; release within 60 days of substantial completion	15.72
Prompt payment	35 days (45 if board meets less than monthly); 1.5% per month	471.425
Cooperative purchasing	State and joint powers contracts; consider state contract first over $25,000	471.345
Preferences and certifications	Small and veteran business quotes to $250,000; targeted group set-asides	471.345
Architects and engineers	No county QBS statute found; professional services outside 471.345	471.345

Who buys

Each county is governed by an elected Board of Commissioners. The board contracts for work and labor, purchases, and road, bridge and building construction (Minn. Stat. 375.21). Most counties have a purchasing or administration office that runs quotes and bids.

Goods and services

Estimated contract	What the county does
$25,000 or less	Quotes or open market, as the board decides; if quotes, at least two where practicable, kept one year
Over $25,000 up to $175,000	Sealed bids or direct negotiation, with two or more quotes when possible, kept one year
Over $175,000	Sealed bids solicited by public notice

Source: Minn. Stat. 471.345, subds. 3 to 5.

Other options in 471.345:

Small and veteran businesses. Counties may use the quote method up to $250,000 when every business solicited is a county-certified small business or a state-certified veteran-owned small business (subd. 20).
Equipment rental. Counties and towns may rent equipment up to $60,000 by direct negotiation (subd. 5a).
Reverse auctions are allowed for supplies and equipment, not services (subd. 16).
Electronic bids, quotes, proposals and bonds are allowed (subd. 18).

Construction and public works

The same $25,000 and $175,000 tiers apply to construction, alteration, repair and maintenance (471.345). Counties may instead award construction to the best value vendor through a request for proposals (471.345, subds. 3a, 4a and 5; 375.21, subd. 1b). Construction manager at risk is also allowed (471.345, subd. 3b, added in 2023). Road, bridge and building work uses the same thresholds with a longer, 3-week notice (375.21).

Bid security. We did not find a statewide county bid bond statute. Check the solicitation.

Bonds. Contractors on public work contracts with a public body must give a performance bond and a payment bond, each at least the contract price. Bonds are not required at or below the $175,000 sealed bid amount. If the price rises, the public body may require more bond (Minn. Stat. 574.26). County boards also take a faithful-performance bond on labor and road, bridge or building contracts (Minn. Stat. 375.21).

Retainage. A public contracting agency may hold up to 5% of each progress payment. It must release all of it within 60 days of substantial completion, except up to 250% of the value of incomplete or corrective work and the greater of 1% or $500 pending final paperwork. Subcontractors get their retainage within 10 days (Minn. Stat. 15.72). A 2026 law added a new subdivision to this section; check the current text.

Notice and award

Notice runs in the qualified legal newspaper of the county and states the time and place of award.
Two weeks' published notice for purchases and work or labor; three weeks for road, bridge or building construction and repair.
Contracts go to the lowest responsible bidder and must be in writing. Contracts that don't follow the statute are void. If no satisfactory bid comes in, the board may advertise again.
In an emergency such as a flood or snowstorm, the board may skip bidding and record the reason in its proceedings.

Source: Minn. Stat. 375.21.

Prevailing wage

State prevailing wage law covers projects "financed in whole or part by state funds," including state-funded design and acquisition. It does not apply to projects under $2,500 with a single trade or $25,000 with multiple trades (Minn. Stat. 177.42 and 177.43, amended in 2023 and 2024). Whether it binds county-let contracts with no state money was not confirmed. Counties may also adopt a local prevailing wage as a minimum standard (Minn. Stat. 471.345, subd. 7).

Getting paid

Counties count as a "municipality" under Minnesota's local prompt payment law (Minn. Stat. 471.425):

Pay within 35 days of receiving an invoice if the board meets at least monthly, or 45 days otherwise.
Notify the vendor of a defective invoice within 10 days.
Late payments earn 1.5% per month, with a $10 minimum on bills of $100 or more.
Prime contractors pay subcontractors within 10 days of receiving payment.

Retainage release follows Minn. Stat. 15.72 above.

Cooperative purchasing and state contracts

Counties may buy from state cooperative contracts. For purchases over $25,000, they must first consider whether a state contract is available and its price and quality. Purchases through a national municipal association alliance or a joint powers cooperative that used competitive bids or quotes are exempt from bidding (Minn. Stat. 471.345, subd. 15). See cooperative purchasing.

Preferences and required certifications

Set-asides. Counties may set aside contracts for small targeted group businesses and rehabilitation facilities, with negotiated awards up to 5% above the estimate (471.345, subds. 8 and 12).
Small and veteran business quotes up to $250,000 (471.345, subd. 20).
Israel certification (Minn. Stat. 16C.053, contracts of $50,000 or more) and E-Verify certification (Minn. Stat. 16C.075, service contracts over $50,000) apply to state contracts. On their face they do not cover counties.

In-state or reciprocal preferences, Iran divestment and non-collusion affidavits were not confirmed for counties; check the solicitation.

Architects and engineers

We did not find a state law requiring qualifications-based selection for county architect and engineer contracts. Professional services fall outside the 471.345 definition of "contract," which covers supplies, materials, equipment and construction. Counties set their own selection process.

Recent changes

2023: Construction manager at risk added as a county option (471.345, subd. 3b; 2023 c 62). Prevailing wage definitions amended (177.42; 2023 c 53).
2024: Prevailing wage definitions amended again (177.42; 2024 c 110).
2026: A new subdivision 1a added to the retainage statute (15.72; 2026 c 90).

Practical tips for Minnesota

Ask to be on quote lists. Contracts up to $175,000 can be negotiated directly with quotes.
Get county small business or state veteran-owned certification; it opens quote-only awards up to $250,000.
Watch qualified legal newspapers and county websites for bid notices, which run two to three weeks.
Watch county board agendas for bid awards and approvals to advertise.
Check Minnesota counties for each county's bid platform, contacts and agendas.

Questions

What is the bid threshold for Minnesota counties?

Sealed bids with public notice for contracts estimated over $175,000. From over $25,000 up to $175,000, the county may bid or negotiate directly with two or more quotes when possible. At $25,000 or less, it may use quotes or buy on the open market (Minn. Stat. 471.345).

How are Minnesota county bids advertised?

In a qualified legal newspaper of the county: two weeks' published notice for purchases and work or labor, and three weeks for road, bridge or building construction and repair (Minn. Stat. 375.21).

Who wins a Minnesota county bid?

The lowest responsible bidder (Minn. Stat. 375.21). For construction, alteration, repair or maintenance, a county may instead award to the best value under a request for proposals (Minn. Stat. 471.345; 375.21).

What bonds do Minnesota counties require?

On public work contracts over the $175,000 sealed bid amount, a performance bond and a payment bond, each at least the contract price (Minn. Stat. 574.26). County boards also take a performance bond on labor and road, bridge or building contracts (Minn. Stat. 375.21).

How fast do Minnesota counties pay?

Within 35 days of receiving an invoice if the board meets at least monthly, or 45 days otherwise. Late payments carry 1.5% per month interest (Minn. Stat. 471.425).

Can small or veteran-owned businesses get a better shot at Minnesota county work?

Yes. Counties may use the quote method up to $250,000 when every business solicited is a county-certified small business or a state-certified veteran-owned small business (Minn. Stat. 471.345, subd. 20).

Can Minnesota counties buy off state contracts?

Yes. Counties may use state cooperative contracts, and must consider them first for purchases over $25,000. Purchases through joint powers or national association cooperatives that used competitive bids or quotes are exempt from bidding (Minn. Stat. 471.345, subd. 15).

Sources

Last reviewed Oct 31, 2026. This is general information, not legal advice. Laws and thresholds change; check the current statute and the bid documents.