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<br />CFMS Contract No.
<br />T-Number
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<br />The Local Government must make prompt payment of its obligations in accordance with applicable law. As
<br />required by Minn. Stat. S l6A.1245, when the Local Government lets a contract for work pursuant to any work
<br />order, the Local Government must require its contractor to pay all subcontractors, less any retainage, within 10
<br />calendar days of the prime contractor's receipt of payment from the Local Government for undisputed services
<br />provided by the subcontractor(s) and must pay interest at the rate of one and one-half percent per month or any
<br />part of a month to the subcontractor(s) on any undisputed amount not paid on time to the subcontractor(s).
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<br />19 Minn. Stat. ~ 181.59 The Local Government will comply with the provisions of Minn. Stat. S 181.59 which
<br />reqUIres:
<br />Every contract for or on behalf ofthe state of Minnesota, or any county, city, town, township, school,
<br />school district, or any other district in the state, for materials, supplies, or construction shall contain
<br />provisions by which the Contractor agrees: (1) That, in the hiring of common or skilled labor for the
<br />performance of any work under any contract, or any subcontract, no contractor, material supplier, or
<br />vendor, shall, by reason of race, creed, or color, discriminate against the person or persons who are
<br />citizens of the United States or resident aliens who are qualified and available to perform the work to
<br />which the employment relates; (2) That no contractor, material supplier, or vendor, shall, in any
<br />manner, discriminate against, or intimidate, or prevent the employment of any person or persons
<br />identified in clause (1) of this section, or on being hired, prevent, or conspire to prevent, the person or
<br />persons from the performance of work under any contract on account of race, creed, or color; (3) That
<br />a violation of this section is a misdemeanor; and (4) That this contract may be canceled or terminated
<br />by the state, county, city, town, school board, or any other person authorized to grant the contracts for
<br />employment, and all money due, or to become due under the contract, may be forfeited for a second
<br />or any subsequent violation of the terms or conditions of this contract.
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<br />20 Termination
<br />20.1 Termination by tlte State for Convenience. The State or commissioner of Administration may cancel this
<br />master contract and any work order contracts at any time, with or without cause, upon 30 days written notice
<br />to the Contractor. Upon termination, the Local Government will be entitled to payment, determined on a pro
<br />rata basis, for services satisfactorily performed.
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<br />20.2 Termination by tlte Local Governmentfor Convenience. The Local Government may cancel this master
<br />contract and any work order contracts at any time, with or without cause, upon 30 days written notice to the
<br />State. Upon termination, the Local Government will be entitled to payment, determined on a pro rata basis,
<br />for services satisfactorily performed.
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<br />20.3 Termination/or Insufficient Funding. The State may immediately terminate this master contract and any
<br />work order contract if it does not obtain funding from the Minnesota legislature or other funding source; or if
<br />funding cannot be continued at a level sufficient to allow for the payment of the services covered here.
<br />Termination must be by written or fax notice to the Local Government. The State is not obligated to pay for
<br />any services that are provided after notice and effective date oftermination. However, the Local
<br />Government will be entitled to payment, determined on a pro rata basis, for services satisfactorily performed
<br />to the extent that funds are available. The State will not be assessed any penalty if the master contract or
<br />work order is terminated because of the decision of the Minnesota legislature or other funding source, not to
<br />appropriate funds. The State must provide the Local Government notice of the lack of funding within a
<br />reasonable time of the State's receiving that notice.
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<br />2/15/2005
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