Need a It Contract in Texas? AroundWire Can Help

IT service contracts in Texas, particularly those involving state agencies or public entities, are governed by the Texas Government Code and relevant sections of the Texas Administrative Code. Contracts typically require vendors to comply with state cybersecurity standards (e.g., Texas DIR requirements), accessibility mandates under Texas Government Code Chapter 2054 (Texas Accessibility Standards), and data privacy laws. Vendors may need to register with the Texas Department of Information Resources (DIR) if bidding on statewide cooperative contracts. Background checks for personnel, especially those accessing sensitive systems, are common. Standard insurance requirements include general liability, professional liability (errors and omissions), and cyber liability coverage, with minimum coverage amounts set by the contracting entity. Payment terms often follow the Texas Prompt Payment Act, mandating payment within 30 days of invoice approval, but retainage or milestone payments may be used for larger projects. Risk factors include strict deliverable deadlines, liquidated damages for delays, and requirements for source code escrow or intellectual property provisions. Dispute resolution usually favors negotiation and mediation before litigation, often specifying venue in Travis County. Subcontractor approvals, reporting obligations, and audit rights are frequently included. Texas contracts may also require compliance with anti-boycott laws and vendor certification regarding debarment or lobbying. Understanding state-specific procurement regulations and maintaining current certifications are essential for successful IT contracting in Texas.