Need a It Contract in Arizona? AroundWire Can Help

In Arizona, IT service contracts—covering software development, maintenance, cloud services, and hardware procurement—are typically governed by both state procurement statutes (Arizona Revised Statutes Title 41, Chapter 23) and the Arizona Procurement Code. Contracts often require vendors to be registered with the Arizona Procurement Portal and may necessitate specific certifications, such as SOC 2 for data security or specialized state IT certifications, depending on the scope. Data privacy and cybersecurity provisions are prominent, with compliance to state-specific data protection laws (e.g., A.R.S. § 44-7501) and, for public sector contracts, adherence to NIST or similar standards. Insurance obligations usually include general liability, professional liability (errors and omissions), and cyber liability insurance, with minimum coverage amounts dictated by the state or agency. Payment terms typically follow Net 30 or Net 45 schedules, with retainage or milestone payments common for longer-term projects. Risk factors include potential liability for data breaches, failure to meet service level agreements (SLAs), and non-compliance with accessibility requirements (such as Section 508 standards for public entities). Dispute resolution in Arizona often favors negotiation and mediation before litigation, and contracts may stipulate venue in Maricopa County courts. Contractors should be aware of prevailing wage rules if public funds are involved, and ensure all subcontractors also meet state licensing and compliance requirements.