Need a Commercial Services Contract in California? AroundWire Can Help

In California, contracts for commercial services—covering sectors such as janitorial, security, facility maintenance, and similar business-to-business offerings—are subject to a robust regulatory environment. Typical contract features include clearly defined scopes of work, deliverables, and timelines, with detailed service-level expectations. State law often requires contractors to hold appropriate business licenses and, for certain trades (e.g., security, building maintenance), specialized certifications or registrations with state agencies such as the Contractors State License Board (CSLB) or the Bureau of Security and Investigative Services (BSIS). Prevailing wage requirements may apply to public contracts under California Labor Code sections 1720–1861. Insurance is a standard obligation, with commercial general liability, workers’ compensation, and, where applicable, professional liability coverage—minimums are frequently specified in the contract and may be dictated by the procuring agency’s risk management policies. Indemnification clauses tend to favor the client, and contractors should review these provisions carefully. Payment terms commonly range from net 30 to net 60 days, with retainage or milestone payments for larger projects. California’s prompt payment statutes (Civil Code § 3320 et seq.) require timely payment for undisputed invoices. Dispute resolution is often addressed through mandatory mediation or arbitration clauses before litigation; contracts with public entities may be subject to the California Government Claims Act. Compliance with local ordinances (e.g., living wage, sustainability practices) and strict adherence to California’s consumer protection and privacy laws are also standard expectations.