Need a Commercial Services Contract in Virginia? AroundWire Can Help

In Virginia, contracts for commercial services—covering a broad range of non-construction services provided to public or private sector clients—are shaped by both state statutes and local procurement norms. The Virginia Public Procurement Act (VPPA) governs most public sector contracts, mandating competitive solicitation and transparency in vendor selection. Contractors typically must hold a valid business license and, depending on the service, may need additional state or local certifications (e.g., for security, cleaning, or environmental services). Insurance requirements are generally robust, with commercial general liability and workers’ compensation policies commonly stipulated; minimum coverage limits are often set by the contracting agency or client. Indemnification clauses are standard, but Virginia law prohibits public bodies from agreeing to broad indemnities, so terms are often narrowly tailored. Payment terms in Virginia are influenced by the state’s Prompt Payment Act, requiring payment within 30 days of invoice approval for government contracts. Risk factors include strict performance standards and liquidated damages for non-performance, as well as clear termination-for-cause provisions. Dispute resolution typically favors negotiation and mediation before litigation; arbitration is less common in public contracts. Contractors should be mindful of compliance with state and local employment laws, and any required background checks or security clearances for staff, especially when servicing government facilities.