Need a Commercial Services Contract in South Dakota? AroundWire Can Help

In South Dakota, contracts for commercial services—encompassing janitorial, landscaping, maintenance, security, and similar offerings—typically include clear scope of work definitions, performance standards, and service level expectations. State and local procurement rules require competitive bidding for most public-sector contracts, with transparency and non-discrimination provisions mandated by South Dakota Codified Laws (SDCL). Contractors must possess a valid South Dakota business license and, depending on the service type, may need additional local permits or professional certifications (e.g., pesticide applicator licenses for landscaping). Insurance requirements are standard: general liability, workers’ compensation, and, when vehicles are used, commercial auto coverage; policy minimums are often specified in bid documents. Indemnification clauses are common, allocating risk and liability primarily to the contractor. Payment terms for state and municipal contracts generally follow the state’s prompt payment statutes, with payment typically within 45 days of invoice approval. South Dakota contracts often prohibit automatic renewal clauses and require explicit written amendments for changes. Dispute resolution usually favors negotiation and mediation before litigation, with venue stipulated within the state. Prevailing wage laws do not apply to most contracts, but all vendors must comply with applicable labor, safety, and environmental regulations. Contractors should be mindful of South Dakota’s sovereign immunity provisions, which may limit certain liabilities when contracting with public entities.