Need a Commercial Services Contract in Minnesota? AroundWire Can Help

In Minnesota, contracts for commercial services—covering areas such as janitorial, facility maintenance, landscaping, and other business support functions—typically emphasize clear scope of work, performance standards, and deliverables. State law requires that contractors comply with Minnesota Statutes Chapter 16C (pertaining to public procurement) and, when working with public entities, adhere to prevailing wage requirements under Minnesota Statutes 177.41–177.44. Licensing is mandatory for certain trades (e.g., electrical, plumbing, security services), and all businesses must be registered with the Minnesota Secretary of State. Insurance obligations generally include commercial general liability and workers’ compensation coverage, with minimum limits often specified by the client; additional insured status and proof of coverage are standard. Indemnification and hold harmless clauses are commonly included to allocate risk. Contracts typically feature net 30 payment terms, but state agencies are bound by the Minnesota Prompt Payment Act, which requires payment within 30 days of invoice approval. Dispute resolution usually favors negotiation and mediation prior to litigation, with venue in Minnesota courts. Contractors should be aware of strict non-discrimination, data privacy, and background check requirements, especially for services provided on government property. Failure to adhere to these statutes or contractual obligations can result in termination for cause, debarment, or claims against bonds or insurance.