1701Laws to be Observed

The Contractor shall observe and comply with the following, relating to the conduct of Work on the Project or to individuals engaged in Work for the Project or employed on the Project:

The Contractor shall hold harmless and indemnify the Department and its representatives against all claims and liabilities arising from or based on violations committed by the Contractor or anyone subject to the control of the Contractor. The Contractor shall immediately report to the Engineer in writing any Contract requirements that are contrary to or inconsistent with any law, regulation, order, decree, or applicable ordinance. The Contractor shall endeavor to comply with relevant and significant ordinances, in consultation with the Engineer. Work on the State Trunk Highway system is generally not subject to regulation by political subdivisions of the State.

1701.1DATA PRACTICES

Bidders are advised that all data created, collected, received, maintained, or disseminated by the Contractor and any Subcontractors in performing the Work contained in the Contract are subject to the requirements of Minnesota Statutes, Chapter 13 and Minnesota Government Data Practices Act (MGDPA). The Contractor shall comply with the requirements of the MGDPA in the same manner as the Department . The Contractor does not have a duty to provide access to public data to the public, if the public data are available from the Department, unless otherwise required by the Contract.

1701.2WORKER CONDUCT

Bidders are hereby reminded of the Department’s policy to provide a workplace free of violence, threats of violence, harassment, and discrimination. The Department has established a policy of zero tolerance for violence in the workplace. Contractors performing Work on Department construction Projects, or local government entities or public agencies utilizing State funds on Highway construction Projects, must maintain a workplace free of violence, harassment, and discrimination. The Contractor must immediately remove from the Project any employee of the Contractor or a Subcontractor in violation of the Department’s “ Harassment Guidelines” and/or “Zero Tolerance of Violence in the Workplace” policy document until such time as the appropriate authority can complete an investigation.

1701.3FALSE CLAIMS ACT

The provisions of the Minnesota “False Claims against the State” Act (Minnesota Statutes, Chapter 15C) apply to any claim by the Contractor under this Contract . For the purpose of this subsection, 1701.3, “Laws to be Observed, False Claims Act” claim is defined in Minnesota Statutes, section 15C.01 Subd. 2.

1701.4CERTIFICATION OF NONDISCRIMINATION AGAINST ISRAEL

By signing this Contract, Contractor certifies it does not engage in and has no present plans to engage in discrimination against Israel, or against persons or entities doing business in Israel, when making decisions related to operating the Contractor’s business. For purposes of this subsection, “discrimination” includes, but is not limited to, engaging in refusals to deal, terminating business activities, or taking other actions that are intended to limit commercial relations with Israel, or persons or en tities doing business in Israel, when such actions are taken in a manner that in any way discriminates on the basis of nationality or national origin and is not based on a valid business reason.

1701.5PROMPT PAYMENT AND RETAINAGE

A Prompt payment of Subcontractors is required by Minnesota Statutes, section 16A.1245. The Contractor must pay a Subcontractor no later than ten days after receiving payment from the Department for undisputed Work provided by that Subcontractor. If the Contractor fails to pay a Subcontractor on time, then the Contractor must pay interest, at the rate of 1.5 percent per month, to the Subcontractor on the undisputed amount not paid on time. For an unpaid amount under $100, the Contractor must pay the actual interest penalty (calculated at 1.5 percent per month). For an unpaid amount over $100, the Contractor must pay the actual interest penalty (calculated at 1.5 percent per month) or $10, whichever is greater. MN Statutes §16A.1245 also provides that a Subcontractor who prevails in a civil action to collect interest penalties from a prime Contractor must be awarded its costs and disbursements, including attorney’s fees, incurred in bringing the action. B Payment of retainage for federal-aid Projects is governed by Minnesota Statutes, section

337.10and Minnesota Statutes, section 15.72, and 49 C.F.R. 49 section 26.29

State law does not require retainage to be withheld. The Contractor may not withhold more than 5 percent in retainage from a Subcontractor, as provided by Minnesota Statutes, section 337.10 Subd. 4 (b). If the Contractor holds retainage from a Subcontractor, the Contractor must fully pay out that retainage no later than 30 Calendar Days after the Subcontractor’s work is satisfactorily completed, or 10 Calendar Days after the

Contractor receives payment of retainage from the Department, whichever is earlier, unless there is a dispute about the Work under a subcontract. If there is a dispute about the Work under a subcontract, the Contractor must pay out retainage to any Subcontractor whose Work is not involved in the dispute, and must provide a written statement detailing the amount and reason for the withholding to the affectedS ubcontractor. For purposes of paying out retainage, a Subcontractor’s Work is satisfactorily completed when all the tasks called for in the subcontract have been accomplished and final documentation is received. Final documentation includes certified payrolls, Material certifications, haul road releases, pit releases, warranties, operating manuals, product literature, verification of final quantities, and Contractor Affidavit (Form IC134). When the Department has made an incremental acceptance of a portion of the prime C ontract, the Work of a Subcontractor covered by that acceptance is deemed to be satisfactorily completed. C Payment of retainage for State Projects is governed by Minnesota Statutes, section 337.10 and Minnesota Statutes, section 15.72. State law does not require retainage to be withheld. The Contractor may not withhold more than 5 percent in retainage from a Subcontractor, as provided by Minnesota Statutes, section 337.10 Subd. 4 (b). The Contractor must pay any retainage no later than 10 Calendar Days after the Contractor receives payment of retainage from the Department, unless there is a dispute about the W ork under a subcontract. If there is a dispute about the Work under a subcontract, the Contractor must pay out retainage to any subcontractor whose Work is not involved in the dispute, and must provide a written statement detailing the amount and reason for the withholding to the affected Subcontractor.

1701.6EQUAL PAY

The Department cannot execute a Contract in excess of $500,000 with a business that has 40 or more employees on a single day during the prior 12 months in this State or a State where the business has its primary place of business unless the business has an equal pay certificate or has certified in the Electronic Bid File that the business is exempt. Bidders may find more information on the Equal Pay Certificate Requirement in Minnesota Statutes, section 363A.44 or at the Department of Human Rights, Equal Pay Certificate website (mn.gov/mdhr/certificates/equalpay).

1701.7COMPLIANCE WITH TAX LAW REQUIREMENTS

The Department cannot make final payment to the Contractor until the Contractor demonstrates that it and all its Subcontractors have complied with the Income Tax withholding requirements of Minnesota Statutes, section 290.92 and section 270C.66 for wages paid for Work performed under the Contract. To establish compliance, the Contractor must submit a “Contractor Affidavit” either online or in paper form

compliance when the Department of Revenue determines that all withholding tax returns have been filed and all withholding taxes attributable to the Work performed on the Contract have been paid. The Contractor must then provide this written certification to the Department to receive final payment. Every Subcontractor working on the Project must submit an approved “ Contractor Affidavit” from the Minnesota Department of Revenue to the Contractor before the Contractor can file its own Contractor Affidavit. The Contractor is advised to obtain the certification from each Subcontractor as soon as the Subcontractor completes Work on the Project. The Department of Revenue, in association with the Department of Employment and Economic Development, offers a free seminar to help Contractors understand tax law requirements. The Department strongly urges the Contractor and all Subcontractors to attend t he “Employment Taxes & Employer Responsibilities Seminar“ or similarly offered classes. You can find a schedule and more information on the Department of Revenue website (www.revenue.state.mn.us). Complying with this requirement is considered part of the Work under this Contract. The Department will enforce this requirement equally with all other Contract requirements. The Contractor delay in complying with this requirement will cause the Department to delay final payment and Contract

Acceptance. The Department may also report non-compliance to the Department of Revenue, which may result in enforcement action by the Department of Revenue. Contractor Affidavit requirements and Form IC134 can be found on the Department of Revenue website (www.revenue.state.mn.us).

1701.8USE OF EQUIPMENT FROM CERTAIN TELECOMMUNICATIONS SUPPLIER PROHIBITED

By signing this Contract, Contractor certifies that consistent with section 889 of the John McCain National Defense Authorization Act for fiscal year 2019, Public Law 115 -233 (Aug. 13, 2018) the Contractor may not use funding covered by this Contract to procure or obtain, or extend, renew, or enter into any Contract to procure or obtain, any Equipment, system, or service that uses “ covered telecommunications Equipment or services” (as that term is defined in section 889 of the Act) as a substantial or essen tial component of any system, or as critical technology as part of any system. The contractor must include this certification as a flow-down clause in any subcontract related to this Contract.