May/June 2026 Issue

Also in this issue: Municipal Regulation of Data Centers     |     AI and Attorney-Client Privilege: What Wisconsin Municipalities Need to Know

Public Bidding Refresher: Changes to Public Bidding Threshold and Best Practices Reminders

Jared Walker Smith | 06.01.26

Regardless of what the weather is doing, it is safe to forecast that Wisconsin’s construction season is well underway. As your community looks to its next public construction project, with the recent changes to Wisconsin’s public bidding thresholds, now is a good time for a refresher on the requirements and limitations of Wisconsin’s public bidding law.

Public Bidding Law Changes

The Wisconsin Legislature recently enacted 2025 Wisconsin Act 188, which for the first time in over 25 years, updates Wisconsin’s competitive bidding thresholds and requirements for certain local government public works projects.

The major change is that cities, villages, municipally owned utilities, towns, and counties saw their public bidding thresholds double for general construction projects. These governmental entities must now provide a class 1 notice before contracting for any project between $10,000 and $50,000, and must publicly bid and award to the lowest responsible bidder any project that exceeds $50,000.

A major exception is that the Act preserves the prior notice limit of $5,000 and bidding limit of $25,000 for newly defined ​“public highway construction” (cities and villages) and ​“public highway contract” (towns). Public highway construction is defined as ​“a public construction project involving the construction, improvement, repair, or maintenance of a highway.” Wis. Stat. § 62.15(1)(b)1.b. Public highway contract is defined as ​“a contract for the construction, execution, repair, remodeling, or improvement of a highway.” Wis. Stat. § 60.47(1)(as).

Towns and counties also saw the addition of an exception for ​“construction by a private person of an improvement that is donated” to the local government after the completion of construction, similar to what was already available to cities and villages. Wis. Stat. §§ 60.47(5)(c) & 59.52(29)(c)2. 

Unfortunately, there was no commensurate change for sanitary district or lake district public bidding thresholds, with those remaining at $25,000 and $2,500 respectively. 

The new limits became effective on April 5, 2026.

Other Requirements Remain

While the thresholds were updated, other aspects of Wisconsin’s public bid law remain unchanged. When a project is required to be publicly bid, the project must be let to the lowest responsive and responsible bidder after advertising for and receiving sealed competitive bids.

A bidder is responsive if the bidder provides all information required by the bid packet, a bid bond, and a performance and payment bond. There is no statutory authority to allow correction of bids, meaning an error identified in a bid pre-opening requires that the bid be returned but prohibits the bidder from bidding again on the project unless it is relet. A bid discovered post-opening grants the municipality discretion to allow withdrawal of the bid.

The determination of the lowest responsible bidder remains the responsibility of the local governmental body. A municipality may determine responsibility through either the statutory pre-qualification process prior to bidding under Wis. Stat. § 66.0901(2) or at the time of bid opening and award. While a municipality has relatively wide discretion related to finding a bidder irresponsible, the municipality should have evidence and not just opinion to support any such conclusion.

The new law also makes no change to existing bonding requirements and thresholds. Municipalities must still ensure that bidders and awardees provide bid bonds and payment and performance bonds, when required by law. See Wis. Stat. §§ 62.15(3) and Wis. Stat. § 779.14.

There are many nuances to and additional requirements of Wisconsin’s public bidding laws, so it is best to check with your municipal attorney prior to bidding or contracting for public construction projects. 

Best Practices: Or How to Avoid Being Stuck with a Bad Contract

Simply put — involve your municipal attorney early. There is a lot that goes into construction projects before they are bid: capital improvement plans are created, projects are budgeted, funding is applied for, architects or engineers are hired, and plans, specifications, and ​“standard” construction contracts are prepared. If an attorney is not involved early in the project, there are points where it becomes too late for an attorney to have meaningful input or impact.

For example, most standard AIA or EJCDC construction contracts assign responsibilities to the architect or engineer, but the architect or engineer is not a party to those contracts and, unless specified elsewhere, are not bound by their terms. Any duties to be taken on by the architect or engineer must be agreed to in the municipality’s agreement with the architect or engineer. While contracts with design professionals can be readily amended if mutually agreeable, the same solution does not exist for contracts with the contractor.

When a contractor bids on a project, the contractor is entitled to rely upon the plans, specifications, and contract terms in preparing their bid. This also ensures that a municipality is comparing apples to apples when the bids come in. A municipality is prohibited from negotiating with a contractor after receipt of bids. This means that to have any meaningful input as to the material terms of the construction contract, the municipal attorney must be consulted with prior to bid advertisement, if not earlier. 

Involving a municipal attorney early is also important where more unique contracts are contemplated, such as indefinite quantity contracts for unknown work throughout the course of a construction season. While Wisconsin’s public construction laws are relatively rigid, a municipal attorney can help make sure that your community remains in compliance with all applicable laws while helping to protect your community’s interests.

If you have questions about public construction contracts, please feel free to contact a member of Boardman Clark’s Municipal Law Practice Group.