Need a Commercial Services Contract in Arizona? AroundWire Can Help

In Arizona, commercial services contracts—covering areas such as facility maintenance, janitorial work, landscaping, and similar business-to-business services—are typically governed by state procurement rules, particularly when the client is a public entity. Key contract features include clear scope of work definitions, performance standards, and deliverable timelines. Arizona law often requires contractors to hold appropriate state or local business licenses and, in certain trades, professional certifications (e.g., for pest control or HVAC services). Insurance obligations are stringent: general liability, workers’ compensation, and auto liability coverage are usually mandatory, with minimum thresholds dictated by state guidelines or agency policy. Indemnification clauses are standard, often favoring the client, and Arizona public contracts must comply with anti-discrimination statutes (A.R.S. § 41-1461) and non-collusion affidavits. Payment terms generally adhere to the Arizona Prompt Payment Act (A.R.S. § 41-2577), mandating timely payment to contractors, though private contracts may specify their own terms. Risk factors to consider include liquidated damages for nonperformance, requirements for performance or payment bonds (especially on public projects), and strict termination for cause provisions. Dispute resolution usually favors negotiation and mediation before litigation; for state contracts, the Arizona Procurement Code (A.R.S. Title 41, Chapter 23) outlines formal administrative remedies. Contractors should expect robust documentation and compliance monitoring throughout the contract lifecycle.