Need a It Contract in Michigan? AroundWire Can Help

IT service contracts in Michigan, particularly those involving public entities or state agencies, are governed by a combination of state procurement laws and specific IT-related standards. Key characteristics include a strong emphasis on data security and privacy, often requiring compliance with state-specific statutes such as the Michigan Identity Theft Protection Act and, where applicable, federal standards like HIPAA or CJIS for sensitive data. Vendors may need to demonstrate relevant certifications (e.g., SOC 2, ISO 27001) and register with the Michigan Department of Technology, Management & Budget (DTMB) for state contracts. Contracts typically mandate robust insurance coverage, including general liability and cyber liability insurance, with the state or agency named as an additional insured. Payment terms often follow a Net 30 or Net 45 structure, with milestone or deliverable-based payments common in larger projects. Michigan contracts may contain explicit requirements for data ownership, breach notification, and right-to-audit clauses. Dispute resolution generally favors negotiation and mediation before litigation, and Michigan law will govern the contract. Contractors should also be aware of prevailing wage requirements and possible Buy Michigan/Buy American provisions in public-sector agreements. Risk allocation is addressed through detailed indemnification clauses and limitation of liability, though unlimited liability for data breaches is sometimes required.