Need a It / Networking Contract in Tennessee? AroundWire Can Help

IT and Networking service contracts in Tennessee, particularly for public sector or state agency work, typically require compliance with the Tennessee Procurement Reform Act and relevant sections of the Tennessee Code Annotated (TCA), including TCA Title 12 for public purchases. Contractors must often be registered vendors with the state and may need specific business licenses depending on the nature of services and location. Data security and privacy standards are emphasized, especially for projects involving access to sensitive or confidential information, with adherence to state and federal cybersecurity regulations such as HIPAA or FERPA if applicable. Contracts generally specify insurance requirements, including general liability and professional liability coverage; cyber liability insurance is increasingly common. Indemnification clauses favor the state, limiting the contractor’s ability to shift liability. Payment terms for state contracts usually follow the Tennessee Prompt Pay Act, with net 45 days as a standard, though large projects may allow for milestone-based payments. Risk factors include strict performance standards, potential liquidated damages for delays, and mandatory background checks for personnel accessing government networks. Dispute resolution often prioritizes negotiation or mediation, with litigation in Tennessee state courts as a last resort. Additionally, contractors must comply with state-specific IT accessibility standards and may be required to provide documentation of staff certifications (e.g., CompTIA, Cisco) depending on the project scope.