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Introduction to City Contracts

The City makes a variety of written contracts to conduct City business. A contract might include the exchange of money, often includes “legal terms” or consequences, and requires signatures.

The name of the document doesn’t matter – a contract could also be called an agreement or memorandum of understanding (MOU).

Responsibilities

Departments have primary responsibility for their contracts, from start to finish. Subject Matter Experts (SMEs) should work with the department’s contract specialists to negotiate scope of work, price, duration, and other key terms of your contract (when applicable). These topics are referred to as the business deal.

The Attorney’s Office is responsible for the legal work. This includes creating contract templates, drafting and negotiating legal terms, and other legal support. If your department needs legal support with a contract, fill out one of these forms. Send the completed form to the Assistant City Attorney (ACA) assigned to your department:

Who can sign a contract?

Do not sign any contract, proposal, quote, MOU, or agreement.

The Common Council must authorize any contracts for the City. No one can sign a contract without authorization from the Council.

  • Pre-authorized: Some contract types are pre-authorized by ordinance or resolution. This includes many purchasing contracts, authorized by MGO 4.26.
  • Authorized by resolution: If a contract is not pre-authorized, the Council must specifically authorize it by resolution.

Departments are responsible for resolutions when needed. Visit resolutions to learn more.

Routing & Signing

Departments are responsible for getting your contracts signed.

Both the City and the contractor (or other party) must sign the contract for it to take effect. Don't start work or exchange money until the contract is fully signed.

The other party should sign first. Then, route the contract for City signatures:

  • Contracts signed by the Mayor and City Clerk must be fully routed in Accela. This way, they are reviewed and signed by the City Clerk, Civil Rights, Risk Management, Finance, and the City Attorney before reaching the Mayor’s Office for signature. Visit electronic contract routing to learn more.
  • Contracts signed by Purchasing are sent to Purchasing in Munis with your requisition.

Send a copy of the fully signed contract to the other party.

The SharePoint Contracts Repository is the storage location for signed contracts. Finance uploads contracts to this site, where all staff can access them.

Types of Contracts

  • Purchasing Contracts

    A purchasing contract is a contract to buy or rent something.

    The purchasing (“procurement”) process also involves selecting a contractor or vendor. The contract is just one step in that process.

    For more information about purchasing contracts, visit:

  • Non-Purchasing Contracts

    Non-purchasing contracts might include:

    • Real estate transactions
    • Intergovernmental agreements (IGAs)
    • To provide grant funding or business loans
    • To receive grants, or spend federal or state grant money (separate contracts)
    • To share information or resources

    Most of the information in this section focuses on purchasing contracts, but the same basic rules apply for non-purchasing contracts. The Common Council must authorize the contract with a resolution, and the contract must be routed in Accela for approvals and signatures.

  • Public Works Contracts

    Public works contracts are contracts to build something, including construction contracts. These are a special type of contract, and they follow different procedures.

    Public works contracts of $25,000 or more must be put out for bid by City Engineering, are not subject to the Purchasing Guidelines, and use different forms. For more information visit:

  • Amendments, Renewals, and Extensions

    There are three types of changes you can make to a signed, unexpired contract:

    • Renewal: When renewal options are included in the original contract.
    • Extension: Lengthen the contract period so it has a later end date than the original contract.
    • Amendment: Change something like the scope of services or the contract price.

    If you need to renew or extend a contract, use the renewal or extension template.

    If you need to amend a contract, visit tips for contract amendments.

    Expired contracts have no effect, and we cannot renew, extend, or amend them. Once a contract has expired, we must start over with a new contract, including a new resolution if needed.

Contract Group

The Contract Group meets periodically to discuss contracting policies, templates, and issues. Any staff who produce contracts as part of their job duties or want to learn about contracting procedures are welcome to attend.

The group also receives emails with contracting announcements.

To join, contact: Rebecca Braselton, RBraselton@cityofmadison.com

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