The rule in plain language
Minnesota 2026 Session Law Chapter 82, section 4 adds Minnesota Statutes section 515B.3-103(g)(3). Before an association enters a contract for property maintenance, construction, repair, or reconstruction services with an estimated cost exceeding $50,000, the board or property manager must solicit a minimum of three written competitive bids.
The provision is effective January 1, 2027 for association activities on or after that date. Read the enacted language and its surrounding provisions in the Minnesota Office of the Revisor of Statutes.
Not legal advice: this article is general information. Associations should ask their attorney how the law, exceptions, governing documents, project structure, and other duties apply to a specific contract.
Three bids do not automatically create a fair comparison
If contractors receive different information, they will price different projects. A useful process begins with an existing-condition record and one written scope describing the work, known conditions, alternates, schedule, warranties, resident protection, and required exclusions.
A practical board file
- Existing-condition report and relevant maintenance history
- One scope issued to each bidder
- Bid invitations and written responses
- Clarifications and alternates recorded consistently
- Licensing, insurance, warranty, and reference checks
- Evaluation criteria and the board's recorded decision
Questions to settle before bids go out
- Who is authorized to issue and clarify the scope?
- How will bidders access the same property information?
- Which assumptions must be priced as alternates?
- How will conflicts of interest be identified and handled?
- What documentation belongs in the board packet and minutes?
The lowest number is not the whole decision
Boards should review scope completeness, exclusions, qualifications, warranties, schedule, resident communication, change-order rules, and total project risk. Legal counsel can advise on fiduciary duties, records, and the association's decision process.
Make the bids easier to compare
Hoyt Exteriors can document current exterior conditions and prepare a clear bid for the board's process. The association remains responsible for its procurement and legal decisions.
Build a Three-Bid Scope