Need a Commercial Services Contract in Tennessee? AroundWire Can Help

In Tennessee, contracts for commercial services—such as janitorial, security, facility maintenance, or landscaping—are typically governed by both state statutes and local procurement policies, particularly when the client is a public agency or municipality. Key contract features include clear statements of work, measurable performance standards, and defined service levels. Tennessee law often requires vendors to possess appropriate business licenses through the Tennessee Department of Revenue and, where applicable, specific trade certifications (e.g., pest control, security). Contractors must comply with state and federal labor laws, including E-Verify requirements for employee eligibility. Insurance obligations are significant: contracts generally mandate commercial general liability, workers’ compensation, and auto liability coverage, with minimum limits specified by the procuring entity. Public contracts may require bonding (performance and payment bonds) and proof of insurance before commencement. Risk factors include strict adherence to timelines and deliverables, with penalties for non-performance. Payment terms are commonly net 30 days from invoice receipt, though prompt payment statutes apply to public contracts. Dispute resolution typically favors negotiation and mediation before litigation, and contracts often specify Tennessee state courts as the venue for legal actions. Prevailing wage requirements may apply in certain public works contexts. State procurement rules and the Tennessee Procurement Commission’s guidelines frequently shape contract structure, emphasizing transparency, competitive bidding, and equal opportunity provisions.