Need a Commercial Services Contract in Kentucky? AroundWire Can Help

In Kentucky, contracts for commercial services—encompassing janitorial, maintenance, landscaping, and similar non-professional services—are governed by a mix of state procurement regulations and standard commercial practices. Typical contracts must comply with the Kentucky Model Procurement Code (KRS Chapter 45A), which mandates competitive bidding or proposal processes for public sector engagements. Service providers are generally required to hold appropriate business licenses and, if applicable, certifications relevant to their trade. Kentucky law often requires contractors to carry general liability and workers’ compensation insurance, with minimum coverage amounts specified in bid documents or contracts. Prevailing wage laws may apply to publicly funded projects, and background checks or e-verify documentation may be required for staff working on government premises. Payment terms are usually net 30 days from invoice approval, but public agencies must also comply with Kentucky’s Prompt Payment Act (KRS 45.453), which imposes deadlines for payment and interest penalties for late payment. Indemnification clauses are common, but Kentucky statutes prohibit public entities from agreeing to open-ended indemnity or hold harmless provisions. Dispute resolution typically favors negotiation and mediation before litigation, and contracts often specify Kentucky courts as the venue. Contractors should also be aware of record-keeping and audit requirements, especially for contracts involving state funds.