Colorado IT service contract template
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How Colorado IT service contract Differ from Other States
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Colorado requires clear disclosure of data privacy obligations under its Consumer Data Privacy laws, which are stricter than many other states.
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State procurement rules in Colorado often mandate specific language regarding contract termination and performance warranties.
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Colorado has unique tax requirements for IT services, necessitating proper classification of services in the contract.
Frequently Asked Questions (FAQ)
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Q: Does Colorado require specific language on data privacy in IT service contracts?
A: Yes, Colorado law mandates that contracts include terms addressing data privacy and protection, especially for consumer data.
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Q: Are there special state taxes on IT services in Colorado?
A: Many IT services are subject to Colorado sales and use tax. Contracts should reflect correct categorization for compliance.
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Q: Do I need to register as a vendor to contract with Colorado state agencies?
A: Yes, vendors must register with the Colorado Department of Personnel & Administration to provide IT services to state agencies.
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Colorado IT Service Contract
This Colorado IT Service Contract (the “Agreement”) is made and entered into as of [Date], by and between:
- [IT Service Provider Legal Name], a [State] [Business Type] with its principal place of business at [IT Service Provider Address], hereinafter referred to as “Provider,”
- and
- [Client Legal Name], a [State] [Business Type] with its principal place of business at [Client Address], hereinafter referred to as “Client.”
1. Scope of Services
The Provider shall provide the following IT services (the "Services") to the Client:
- Option A: Managed IT Support.
- Option B: System Administration.
- Option C: Software Installation and Upgrades.
- Option D: Cybersecurity Services.
- Option E: Cloud Computing Services.
- Option F: Helpdesk Support.
- Option G: Network Maintenance and Monitoring.
- Option H: Data Backup and Recovery.
- Option I: Hardware Procurement and Set-up.
- Option J: Virtualization.
- Option K: IT Consulting.
- Option L: [Detailed Description of Specific Services].
Detailed specifications of the Services are set forth in [Exhibit A, Scope of Work].
2. Deliverables and Acceptance Criteria
The Provider shall deliver the following deliverables:
- Option A: [List of Deliverables].
- Option B: Performance Metrics:
- Uptime Percentage: [Percentage].
- Response Times: [Time Frame].
- Data Recovery Point Objective (RPO): [Time Frame].
- Option C: Service Level Agreements (SLAs): See [Exhibit B, SLAs].
- Option D: Acceptance Criteria:
- [Specific Acceptance Criteria].
3. Service Provision
The Services shall be provided:
- Option A: On-site at [Client Location].
- Option B: Remotely.
- Option C: Hybrid: [Description of On-site vs. Remote Split].
Travel and expense reimbursement shall be governed by the Provider's standard policy, attached as [Exhibit C, Travel and Expense Policy], and shall comply with reasonable Colorado business expense norms.
4. Client Responsibilities
The Client shall:
- Option A: Provide system access to the Provider.
- Option B: Provide timely information necessary for the Provider to perform the Services.
- Option C: Provide required equipment for service continuity.
- Option D: Response Time: Client shall respond to Provider inquiries within [Time Frame].
5. Timelines
- Option A: Service Commencement Date: [Date].
- Option B: Key Milestones: [List of Milestones and Dates].
- Option C: Routine Maintenance Windows: [Day and Time].
- Option D: Emergency Procedures: As defined in [Exhibit D, Emergency Procedures].
- Option E: Estimated Completion Date: [Date].
6. Fees and Billing Arrangements
The Client shall pay the Provider as follows:
- Option A: Fixed-Price: [Dollar Amount].
- Option B: Time-and-Materials: [Hourly Rate] per hour.
- Option C: Retainer: [Dollar Amount] per month.
- Option D: Project-Based: [Dollar Amount] per project.
Rate schedules are attached as [Exhibit E, Rate Schedules].
- Option E: Invoicing: [Frequency, e.g., Monthly] milestone invoicing.
- Option F: Payment Method: Direct deposit/e-payment.
- Option G: Late Payment Interest: [Percentage] per month.
- Option H: Colorado Sales Tax: Client is responsible for all applicable Colorado sales tax. Provider will provide required tax statements.
7. Intellectual Property
- Option A: Ownership of intellectual property created during the Services shall be with the [Client/Provider].
- Option B: License rights for software, code, scripts, configurations, documentation: [Detailed License Terms].
- Option C: Pre-existing materials: Provider retains ownership of all pre-existing materials.
- Option D: Work-for-hire: This is a work-for-hire agreement as defined by Colorado law.
- Option E: Provider Portfolio Display Rights: [Yes/No]. If yes, Provider may display the Client's name and logo in its portfolio with Client's prior written approval.
8. Data Privacy, Information Security, and Cybersecurity
The Provider shall comply with:
- Option A: Colorado Consumer Data Privacy Act (CCPA)
- Option B: C.R.S. § 6-1-713.
- Option C: [Other Relevant Regulations, e.g., HIPAA, FERPA].
The Provider shall implement:
- Option D: Incident response procedures as defined in [Exhibit F, Incident Response Plan].
- Option E: Data encryption protocols: [Description of Protocols].
- Option F: Minimum technical safeguards: [List of Safeguards].
- Option G: Data breach notification: Provider will notify Client and the Colorado Attorney General as required by law.
9. Regulatory and Industry Compliance
The Provider shall comply with all applicable:
- Option A: Federal laws.
- Option B: State (Colorado) laws.
- Option C: Local laws and regulations.
Specific regulations include:
- [List specific regulations relevant to the Client's industry, e.g., CCPA, HIPAA, FERPA, government IT security standards].
10. Subcontracting and Assignment
- Option A: The Provider shall not subcontract any Services without the prior written consent of the Client.
- Option B: The Provider shall vet all Colorado subcontractors to ensure they meet insurance, background, and credentialing standards.
11. Confidentiality
- Option A: The Provider shall protect all proprietary, business, and customer data of the Client.
- Option B: This Agreement is subject to the Colorado Uniform Trade Secrets Act.
- Option C: Post-termination: Data retention and secure destruction procedures are defined in [Exhibit G, Data Retention and Destruction Policy]. Confidentiality obligations survive termination of this Agreement for a period of [Number] years.
12. Change Management and Amendment
- Option A: All changes to the Services must be documented in writing and approved by the Client.
- Option B: Changes may result in adjustments to fees, which must be agreed upon in writing.
13. Insurance and Indemnity
- Option A: The Provider shall maintain professional liability (E&O), cyber liability, and general business insurance with Colorado-compliant carriers.
- Option B: The Client shall be listed as an additional insured where reasonable.
- Option C: Liability limits: [Dollar Amount].
14. Warranty
- Option A: The Provider warrants that the Services will be performed in a professional and workmanlike manner.
- Option B: Time-limited defect repair: [Time Frame] for critical failures; [Time Frame] for non-critical failures. SLAs apply as defined in [Exhibit B, SLAs].
- Option C: Exclusions: This warranty does not cover client misuse or force majeure events.
- Option D: No implied warranty beyond the terms of this Agreement.
- Option E: Remediation process: [Description of Remediation Process].
15. Delayed Performance/Breach
- Option A: Consequences for delayed performance, service interruptions, or repeated failures to meet SLAs are defined in [Exhibit H, Liquidated Damages].
- Option B: Indemnification terms: Provider will indemnify Client against losses resulting from Provider's negligence or willful misconduct, subject to the liability limits in Section 13.
16. Termination
- Option A: Mutual right to terminate for cause (breach, uncured failure, insolvency) with [Number] days written notice and opportunity to cure.
- Option B: Termination for convenience by either party with [Number] days written notice.
- Option C: Exit transition assistance: The Provider shall provide reasonable exit transition assistance to the Client.
- Option D: Settlement of outstanding service fees: Client shall pay for all Services rendered up to the date of termination.
- Option E: Post-termination transition support: The Provider shall provide [Number] hours of post-termination support.
17. Dispute Resolution
- Option A: The parties shall first attempt to resolve any disputes through negotiation.
- Option B: If negotiation fails, the parties shall attempt mediation.
- Option C: If mediation fails, the parties may pursue arbitration or litigation in a Colorado venue.
- Option D: Choice of law: This Agreement shall be governed by the laws of the State of Colorado.
- Option E: Jurisdiction and venue: The jurisdiction and venue for any legal action shall be in [County], Colorado.
- Option F: Prevailing party legal fee recovery: The prevailing party in any legal action shall be entitled to recover its reasonable attorneys' fees and costs.
18. Colorado-Specific Notices
- Option A: Data breach notification: The Provider shall notify the Client and the Colorado Attorney General of any data breach as required by law.
- Option B: Electronic signatures: This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Electronic signatures shall be valid under the Colorado Uniform Electronic Transactions Act.
- Option C: [List any other Colorado-specific legal requirements].
19. Representations and Warranties
The Provider represents and warrants that:
- Option A: It is in compliance with all applicable federal, state (Colorado), and local laws.
- Option B: It has the authority to enter into this Agreement.
- Option C: It has lawful possession of all licensed software used in providing the Services.
- Option D: It has no conflicts of interest that would impair its ability to perform the Services.
20. Non-Solicitation and Non-Competition
- Option A: Non-solicitation: During the term of this Agreement and for a period of [Number] months following termination, the Client shall not solicit the Provider's employees.
- Option B: Non-competition: To the extent permitted by Colorado law (C.R.S. § 8-2-113), the Provider shall not compete with the Client in [Specific Geographic Area] for a period of [Number] months following termination of this Agreement related to [specific industry and scope].
- Note: Colorado law limits the enforceability of non-compete agreements. This provision should be reviewed by legal counsel.
21. Notice
All notices shall be in writing and shall be deemed to have been duly given when:
- Option A: Delivered personally.
- Option B: Sent by certified mail, return receipt requested.
- Option C: Sent by email with confirmation of receipt.
- Option D: Sent through a secure portal.
Notices shall be sent to the following addresses:
- To Provider: [IT Service Provider Address], [IT Service Provider Email]
- To Client: [Client Address], [Client Email]
22. Force Majeure
Neither party shall be liable for any delay or failure to perform its obligations under this Agreement due to causes beyond its reasonable control, including but not limited to:
- Option A: Natural disasters.
- Option B: Regulatory changes.
The affected party shall use reasonable efforts to mitigate the interruption.
23. Entire Agreement
This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written, relating to the subject matter of this Agreement.
24. Severability
If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
25. Waiver
No waiver of any provision of this Agreement shall be effective unless in writing and signed by the waiving party.
26. Survival
The following provisions shall survive termination of this Agreement:
- Option A: Confidentiality.
- Option B: Intellectual Property.
- Option C: Indemnification.
- Option D: Data Handling.
- Option E: Legacy Obligations.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
[IT Service Provider Legal Name]
By: [Name]
Title: [Title]
[Client Legal Name]
By: [Name]
Title: [Title]