Need a Commercial Services Contract in Texas? AroundWire Can Help

In Texas, contracts for Commercial Services—covering areas such as facility management, janitorial, landscaping, security, and related non-professional services—are governed by a combination of state procurement statutes (notably Texas Government Code Chapters 2155 and 2262) and local agency policies. Typical contract features include clear scopes of work, measurable performance standards, and defined deliverables. Vendors must often register with the Texas Comptroller’s Centralized Master Bidders List (CMBL) and, depending on the service, may require specific state or local licenses (e.g., security services require licensing by the Texas Department of Public Safety). Prevailing wage requirements may apply for certain public projects. Insurance obligations are stringent: general liability and workers’ compensation coverage are commonly mandated, with minimum limits specified in the solicitation. Indemnification clauses are standard, but anti-indemnity statutes (Tex. Ins. Code §151.102) limit their reach in some contexts. Payment terms typically follow the Texas Prompt Payment Act, requiring state agencies to pay within 30 days of invoice receipt, with interest penalties for late payment. Contracts often specify Texas law as governing law and favor mediation or non-binding dispute resolution before litigation. Risk factors include strict performance timelines, liquidated damages clauses, and potential termination for convenience by the state. Contractors should also be aware of Historically Underutilized Business (HUB) participation goals in applicable procurements.