What is the Authority to Enter Into and Execute Contracts?

A city or town is authorized to make any contracts necessary to carry into effect the applicable powers granted by this chapter and to provide for the manner of executing the contracts 7‐1-4124(4) and 7‐5-4301, MCA. All municipal contracts for goods or services should be drafted by the city attorney for review and approval by the city or town council prior to execution by the mayor or chief executive. As detailed in Section 6.103, a contract for the purchase of any automobile, truck, other vehicle, road machinery, other machinery, apparatus, appliances, equipment, or materials or supplies for construction, repair, or maintenance in excess of $80,000 must be given to the lowest responsible bidder after advertisement for bids. A public work or construction project may not be divided into multiple contracts or separate work orders in an attempt to circumvent the competitive bidding requirements, 7-5-4305, MCA. Energy performance contracts and the solicitation and award of an investment grade energy audit are exempt from these competitive bidding requirements, 7-5-4315, MCA. With certain limited exceptions, a contract for services must not extend beyond five years 7‐5-4304, MCA. Printing contracts must be let annually, 7-5-4108, MCA. The mayor, any member of the council, any city or town officer, or any relative or employee of an enumerated officer may not be directly or indirectly interested in the profits of any contract entered into by the council while
the officer is or was in office. The requirements that must be met to waive this prohibition are set forth in detail at
7-5-4109, MCA.