Contracts FAQ 4

What kinds of municipal contracts don't have to be competitively bid under state law?

State law only requires competitive bidding for municipal contracts involving public construction with an estimated cost exceeding $25,000. Therefore, contracts that do not involve public construction are not subject to the state bid law requirements.

There are many types of municipal contracts that do not involve public construction. These include contracts for the purchase or sale of real estate; contracts for ambulance, refuse pickup, recycling or similar services, and; contracts for the purchase of fire trucks, dump trucks, backhoes, police cars and other general use equipment. They also include contracts for engineering, architect and other professional services even if related to municipal projects. Aqua-Tech, Inc. v. Como Lake Protection and Rehabilitation District, 71 Wis.2d 541, 239 N.W.2d 25, 28 (1976).

For a video with information on this topic, click here to watch it on the League's YouTube channel.