Need a Commercial Services Contract in North Carolina? AroundWire Can Help

In North Carolina, contracts for Commercial Services—such as janitorial, landscaping, facility management, and related support services—are typically governed by a combination of state procurement statutes and agency-specific regulations. Contracts often require vendors to be properly licensed in their trade and registered to do business in the state, with certain services (e.g., pest control, security, HVAC) necessitating additional state-issued certifications. Prevailing wage laws generally do not apply to commercial service contracts unless federal funds are involved. Standard contract features include mandatory insurance coverage (commercial general liability, workers’ compensation, and sometimes professional liability), with specified minimum limits and the state or contracting agency named as an additional insured. North Carolina mandates compliance with E-Verify for contractors and subcontractors, and many contracts include provisions for background checks on personnel. Payment terms commonly follow the state’s Prompt Payment Act, requiring payment within 30 days of invoice approval, though retainage may be withheld until satisfactory completion. Risk factors include liquidated damages for delays or nonperformance and termination for convenience clauses favoring the state. Dispute resolution is typically addressed through negotiation and, if unresolved, escalation to the State Construction Office or administrative hearings before litigation. Contracts must also comply with anti-discrimination laws and may require adherence to Historically Underutilized Business (HUB) participation goals. All terms are subject to review by the North Carolina Department of Administration and must adhere to relevant sections of the North Carolina General Statutes, particularly Chapter 143.