103E.551 CONTRACTOR'S DEFAULT.
Subdivision 1. Notice.
If a contractor defaults in the performance of the contract, the auditor
shall mail a notice of the default to the contractor, the surety of the contractor's bond, the engineer,
and the auditors of the affected counties. The notice must specify the default and state that if
the default is not promptly removed and the contract completed, the unfinished portion of the
contract will be awarded to another contractor.
Subd. 2. Completion of contract by surety.
If the surety of the contractor's bond promptly
proceeds with the completion of the contract, the affected auditors may grant an extension of
time. If the contract is completed by the surety, the balance due on the contract must be paid to the
surety, less damages incurred by the affected counties from the default.
Subd. 3. Awarding of contract; recovery on bond.
If the surety of the contractor's bond
does not undertake the completion of the contract or does not complete the contract within the
time specified or extended, auditors of the affected counties shall advertise for bids to complete
the contract in the manner provided in the original awarding of contracts. The drainage authority
may recover the increased amounts paid to a subsequent contractor after reselling the work, and
damages incurred by affected counties, from the first contractor's bond.
History: 1990 c 391 art 5 s 75