Need a Commercial Services Contract in Maryland? AroundWire Can Help

In Maryland, contracts for Commercial Services—covering areas such as janitorial, landscaping, facility maintenance, and similar business-to-business offerings—are subject to a combination of state procurement regulations and local requirements. Contractors must typically be registered and in good standing with the Maryland Department of Assessments and Taxation, and may require specific business licenses depending on service type and locality. Prevailing wage laws may apply to contracts funded by public entities, especially for building-related services. Insurance requirements are stringent; commercial general liability and workers’ compensation coverage are standard, with public contracts often requiring additional insured endorsements and proof of coverage before contract execution. Maryland law mandates clear delineation of scope, deliverables, and performance standards within contracts, and often includes provisions for liquidated damages or penalties for non-performance. Payment terms for state and local government contracts are governed by the Maryland Prompt Payment Act, generally requiring payment within 30 days of invoice approval. Risk allocation is carefully negotiated, with indemnification clauses common. Dispute resolution typically favors negotiation and mediation before litigation, in accordance with Maryland law; some public contracts specify venue in state courts. Compliance with anti-discrimination statutes and, where applicable, minority business enterprise (MBE) participation goals is enforced. Contractors should also be aware of data privacy and cybersecurity obligations if services involve access to sensitive information.