Need a It Contract in New York? AroundWire Can Help

In New York State, IT service contracts—covering software development, systems integration, cybersecurity, and managed services—are typically governed by a robust regulatory framework emphasizing data privacy, security, and vendor accountability. Contracts with state agencies must comply with the New York State Finance Law, the State Technology Law, and the Office of Information Technology Services (ITS) policies, including strict adherence to NYS Information Security Policies and the SHIELD Act for data protection. Vendors may need to demonstrate relevant certifications, such as SOC 2 or ISO 27001, and, for certain projects, staff background checks or MWBE (Minority and Women-owned Business Enterprise) participation. Insurance requirements are stringent: general liability, cyber liability, workers’ compensation, and sometimes technology errors and omissions coverage are standard. Indemnification and limitation of liability clauses are closely negotiated, with the state often requiring broad indemnity from vendors. Payment terms typically follow a net-30 or net-45 structure, subject to prompt payment provisions, but milestone or deliverable-based payments are frequent for complex IT projects. Risk factors include cybersecurity incidents, non-compliance with data handling standards, and delays in delivery. Dispute resolution often favors negotiation or mediation prior to litigation, with New York courts as the preferred jurisdiction. Contracts must also address intellectual property ownership, often granting the state broad usage rights to deliverables.