Need a It / Networking Contract in South Dakota? AroundWire Can Help

In South Dakota, contracts for IT/Networking services—whether with state agencies, educational institutions, or local governments—are governed by a combination of state procurement statutes (SDCL Title 5, especially Chapters 5-18A and 5-18D) and agency-specific policies. Typical contracts require clear scope of work definitions, deliverables, and service-level agreements. Vendors must be registered to do business in South Dakota and may need specific licensing or certification, such as evidence of cybersecurity qualifications (e.g., compliance with NIST or similar frameworks for sensitive data). State contracts commonly mandate adherence to data privacy and security requirements, including breach notification procedures under SDCL 22-40-20 and related statutes. Insurance obligations are significant: contractors are usually required to carry general liability and professional liability (E&O) insurance, with the state named as an additional insured. Indemnification provisions tend to favor the state, and limitation of liability clauses are often restricted. Payment terms are typically net 30 days from invoice approval, but progress payments may apply for larger projects. South Dakota law prohibits certain indemnity and hold harmless clauses per SDCL 5-18A-17. Dispute resolution generally favors negotiation and, if necessary, litigation in South Dakota state courts; arbitration clauses are less common. Contractors should be aware of prevailing wage requirements only if federal funding is involved, as South Dakota does not have a state prevailing wage law. Overall, compliance, data security, and clear risk allocation are central to IT/Networking contracts in South Dakota.