Need a It Contract in North Dakota? AroundWire Can Help

In North Dakota, IT service contracts—covering software development, systems integration, cloud services, and related support—are typically governed by state procurement rules managed by the Office of Management and Budget (OMB). Contracts must comply with North Dakota Century Code (NDCC) Title 54, which outlines public procurement procedures, including competitive bidding thresholds and preferences for in-state vendors when practical. IT vendors may be required to register with the Secretary of State and, in some cases, provide evidence of relevant industry certifications (e.g., for cybersecurity or cloud services). Standard contractual features include clear statements of work, deliverable milestones, and performance metrics. State contracts often mandate minimum insurance coverage, such as general liability and professional liability (errors and omissions), with policy limits specified in the solicitation. Data security and privacy clauses are essential, particularly for contracts involving sensitive or personally identifiable information, and must comply with state data breach notification laws. Payment terms generally follow Net 30 schedules, but milestone or deliverables-based payments are also common. Contracts typically include audit rights for the state and require vendors to cooperate with state oversight. Dispute resolution often starts with good-faith negotiation, with litigation in North Dakota state courts as the default forum; arbitration is rarely mandated. Vendors should note that indemnification clauses are subject to state law limitations, as North Dakota agencies cannot agree to open-ended indemnity due to constitutional constraints.