A contract let under the provisions of this chapter shall require the work to be done pursuant to the plans and specifications on file in the office of the city auditor, subject to the approval of the engineer acting for the municipality, and shall provide further:

1.    That the governing body shall have the right to suspend the work at any time for improper construction and to relet the contract therefor or to order a reconstruction of the work as to any part thereof improperly done; 2.    The time within which the work shall be completed; 3.    The period of time for which the work shall be guaranteed as to workmanship and materials; 4.    The fund from which the contract price is to be paid by the municipality; 5.    That the consideration expressed in the contract is payable only in warrants drawn on the fund described in the contract; 6.    That the municipality assumes and incurs no general liability under such contract; and

7.    That failure of the engineer to reject work and materials which are not up to specifications and acceptance of the job by the engineer shall not release the contractor from liability for any failure on the contractor’s part to perform work or furnish materials in accordance with the plans and specifications.

Such contract shall be entered into in the name of the municipality and executed on its behalf by its executive officer and countersigned by its auditor, and the seal of the municipality affixed thereto. When the contract has been signed by the contractor, it shall be filed in the office of the city auditor. The engineer acting for the municipality shall supervise and inspect the work during its progress.