Need a It Contract in California? AroundWire Can Help

In California, IT service contracts—covering areas like software development, system integration, and managed services—are shaped by robust state procurement laws and a strong emphasis on data privacy and security. Contracts typically require vendors to comply with the California Public Records Act, the State Administrative Manual (SAM), and, where applicable, the California Consumer Privacy Act (CCPA). Vendors may need to demonstrate relevant certifications such as ISO 27001 for information security or SOC 2 compliance, especially for cloud or data-handling services. Insurance requirements are stringent, often including general liability, professional liability (errors and omissions), and cyber liability coverage, with the State listed as an additional insured. Payment terms tend to follow net-30 or net-45 schedules, but milestone-based or deliverable-based payments are common for larger projects. Risk allocation clauses, such as indemnification and limitations of liability, are heavily negotiated, with the State generally resisting broad indemnity provisions. Dispute resolution usually favors California venue and jurisdiction, with a preference for mediation or arbitration before litigation. Statutory requirements like prevailing wage laws rarely apply to IT unless physical installation is involved, but compliance with non-discrimination and accessibility (e.g., Section 508 or WCAG) standards is routine. Contractors must register with the California Department of General Services and, for certain projects, may need to be listed on state-approved vendor lists such as CMAS or IT MSA.