Kentucky IT service contract template

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How Kentucky IT service contract Differ from Other States

  1. Kentucky law requires IT service providers to clearly outline data privacy and cybersecurity obligations due to state-specific cybersecurity regulations.

  2. Certain termination clauses in Kentucky must comply with local regulations regarding notice periods and dispute resolution, which may differ from other states.

  3. Kentucky has distinctive tax and licensing requirements for IT services that must be addressed in the contract to ensure compliance.

Frequently Asked Questions (FAQ)

  • Q: Is a written IT service contract legally required in Kentucky?

    A: While not always legally mandated, a written contract is highly recommended to ensure both parties’ rights and obligations are clearly defined.

  • Q: Do Kentucky IT service contracts need to address state-specific cybersecurity laws?

    A: Yes, Kentucky-specific cybersecurity and data privacy requirements should be clearly included to comply with state regulations.

  • Q: Can this Kentucky IT service contract template be edited for different business types?

    A: Yes, the DOCX template is fully editable, allowing customization for various IT services and business models in Kentucky.

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Kentucky IT Service Contract

This Kentucky IT Service Contract (the “Agreement”) is made and entered into as of [Date of Signing] by and between:

  • [IT Service Provider Legal Business Name], a [Kentucky Business Entity Type] with its principal place of business at [IT Service Provider Business Address], hereinafter referred to as “Provider”, and
  • [Client Legal Business Name], a [Kentucky Business Entity Type] with its principal place of business at [Client Business Address], hereinafter referred to as “Client”.

Provider’s contact information:

  • Name: [IT Service Provider Contact Name]
  • Phone: [IT Service Provider Phone Number]
  • Email: [IT Service Provider Email Address]

Client’s contact information:

  • Name: [Client Contact Name]
  • Phone: [Client Phone Number]
  • Email: [Client Email Address]

1. Scope of Services

  • Description of IT Services: The Provider agrees to provide the following IT services to the Client:
    • Option A: Network Setup and Maintenance
    • Option B: Hardware and Software Procurement
    • Option C: Installation and Configuration
    • Option D: Cybersecurity Monitoring and Response
    • Option E: Cloud Service Management
    • Option F: Data Backup and Disaster Recovery
    • Option G: Helpdesk and Remote Troubleshooting
    • Option H: Managed IT Services
    • Option I: System Integration
    • Option J: Software Development or Customization
    • Option K: Regular System Updates and Patch Management
    • Option L: Migration Services
  • Client Needs Assessment Summary: [Summary of Client Needs Assessment]
  • IT Environment Inventory: [Detailed IT Environment Inventory]
  • Baseline Documentation: [Baseline Documentation of Hardware and Software]

2. Service Deliverables and Performance Standards (SLA)

  • Service Deliverables: The Provider shall provide the following service deliverables: [List of Service Deliverables]
  • Performance Standards (SLA):
    • System Uptime Percentage: [Agreed Upon Uptime Percentage]%
    • Response Time: [Specific Response Time Commitment for Incidents (e.g., 1 hour for critical incidents)]
    • Resolution Time: [Specific Resolution Time Commitment for Incidents (e.g., 4 hours for critical incidents)]
    • Onsite Support Availability: [Days and Hours of Onsite Support Availability] (Kentucky Time Zone)
    • Remote Support Availability: [Days and Hours of Remote Support Availability] (Kentucky Time Zone)
    • Escalation Procedures: [Detailed Escalation Procedures]

3. Technical Specifications

  • Compatible Operating Systems: [List of Compatible Operating Systems]
  • Supported Devices: [List of Supported Devices]
  • Network Infrastructure: [Description of Network Infrastructure]
  • Cybersecurity Standards: [Cybersecurity Standards (e.g., NIST, CIS Controls, Kentucky-specific guidelines)]
  • Data Privacy Compliance: Compliance with federal and Kentucky data privacy statutes, including:
    • Option A: HIPAA (for healthcare clients)
    • Option B: GLBA (for financial clients)

4. Regulatory Compliance

  • Industry-Specific Requirements: The Provider shall comply with the following industry-specific regulatory compliance requirements relevant in Kentucky:
    • Option A: CMR compliance (for utilities)
    • Option B: Kentucky data breach notification requirements (KRS 365.732-365.734)
  • Staying Current: The Provider is responsible for staying current with all applicable Kentucky and federal regulatory changes affecting IT services.

5. Client Obligations

  • Access: Timely access to facilities, personnel, administrative credentials, hardware, and software.
  • Notification: Prompt notification of incidents.
  • IT Liaison: Designation of a client-side IT liaison: [Name of Client IT Liaison]

6. Physical and Data Security

  • Data Breach Notification Procedures: Compliance with Kentucky-specific data breach notification procedures.
  • Encryption Standards: [Required Encryption Standards]
  • Password Policies: [Defined Password Policies]
  • Multi-Factor Authentication: [Multi-Factor Authentication Requirements]

7. Work Location

  • Onsite Work: Onsite work at Client facilities at [Client Business Address] shall be governed by Kentucky employment and independent contractor rules.
  • Remote Work: [Rules for Remote Work]
  • Travel Reimbursement: [Terms of Travel Reimbursement, compliant with Kentucky labor law]

8. Fees and Payment

  • Fee Structure:
    • Option A: Flat Fee: [Amount of Flat Fee]
    • Option B: Hourly Rate: [Amount of Hourly Rate]
    • Option C: Retainer: [Amount of Retainer Fee]
    • Option D: Milestone-Based Payments: [Description of Milestones and Payments]
  • Payment Schedule: [Detailed Payment Schedule]
  • Invoicing Process: [Description of Invoicing Process, noting required Kentucky sales and use tax where applicable]
  • Late Payment Penalties: [Description of Late Payment Penalties]

9. Kentucky Tax Requirements

  • Sales Tax: Compliance with Kentucky state sales tax exemption or collection rules for software and IT services, referencing applicable KRS provisions. [Specify KRS provision if known]

10. Intellectual Property Rights

  • Ownership:
    • Client Property: [List of Items that Become Client Property (e.g., Custom Software Code)]
    • Provider Property: [List of Items that the Provider May Retain or Reuse]
  • Kentucky Uniform Trade Secrets Act Compliance: The parties shall comply with the Kentucky Uniform Trade Secrets Act.

11. Confidentiality and Data Protection

  • Confidential Information: [Definition of Types of Confidential Information]
  • Non-Disclosure: [Duties of Non-Disclosure]
  • Permitted Disclosures: Permitted disclosures for legal compliance (such as upon lawful request by Kentucky authorities).
  • Data Protection Practices: [Detailed Data Protection Practices]
  • Survival: These obligations survive termination of the Agreement.

12. Software Licensing Compliance

  • Compliance: The Provider shall ensure compliance with software licensing, including audits and reporting.

13. Quality Assurance and Ongoing Support

  • Acceptance Testing: [Acceptance Testing Standards]
  • Post-Deployment Monitoring: [Post-Deployment Monitoring Procedures]
  • Warranty/Maintenance Period: [Description of Warranty or Maintenance Period]
  • Support Renewal: [Support Renewal Options]
  • Service Exclusions:
    • Example 1: Damages from third-party software.
    • Example 2: Client misuse.
    • Example 3: Force majeure (as defined by Kentucky law).

14. Force Majeure

  • Kentucky-Specific Risks: Considering Kentucky-specific natural disaster risks (such as tornadoes or floods).
  • Timelines and Notification: [Timelines and Notification Protocols in the Event of Force Majeure]

15. Amendment

  • Written Consent: Any amendment to this Agreement must be in writing and signed by both parties, as per Kentucky Statute of Frauds requirements for contractual modifications.

16. Duration, Renewal, and Termination

  • Duration: [Initial Term of the Agreement]
  • Renewal: [Renewal Terms (e.g., Automatic Renewal Unless Notice Given)]
  • Termination:
    • For Cause: (including breach or insolvency with applicable Kentucky notice requirements): [Detailed Terms for Termination For Cause]
    • Without Cause: (with [Number] days' advance written notice): [Detailed Terms for Termination Without Cause]
  • Effect of Termination: [Requirements for Timely Return or Deletion of Confidential Information and Assistance During Transition]

17. Liability and Indemnification

  • Limits of Liability: [Limits of Liability for Each Party]
  • Carve-Outs: Carve-outs for gross negligence or willful misconduct.
  • Client Indemnity: Client indemnity for intellectual property supplied to the Provider.
  • Provider Indemnity: Provider indemnity for third-party claims arising from non-compliance with Kentucky law.

18. Insurance Requirements

  • Minimum Levels: [Minimum Levels of Insurance Coverage]
  • Types:
    • Cyber Liability
    • Commercial General Liability
    • Errors & Omissions Coverage
  • Proof of Insurance: The Provider shall provide proof of insurance compliance under Kentucky law.

19. Dispute Resolution

  • Escalation: Escalation from negotiation to mediation, then to arbitration or litigation.
  • Venue: [Specific Local Kentucky Venue (e.g., Franklin County Circuit Court)]
  • Governing Law: Choice of Kentucky law as the governing law.

20. Compliance with Laws

  • Business Registration: Compliance with all applicable Kentucky and federal laws regarding business registration (such as Secretary of State registration for foreign businesses).
  • Labor: Compliance with Kentucky labor laws, clarifying independent contractor status under Kentucky law.
  • Anti-Discrimination Regulations
  • Procurement Rules
  • Consumer Protection Laws applicable to IT services

21. Key Contacts

  • Operational Contact (Provider): [Provider Operational Contact Name, Phone, Email] (Kentucky-based)
  • Billing Contact (Provider): [Provider Billing Contact Name, Phone, Email] (Kentucky-based)
  • Legal Contact (Provider): [Provider Legal Contact Name, Phone, Email] (Kentucky-based)
  • Operational Contact (Client): [Client Operational Contact Name, Phone, Email]
  • Billing Contact (Client): [Client Billing Contact Name, Phone, Email]

22. Documentation Handover

  • Requirements: Requirements for documentation handover, system access return, and final reporting at contract close.
  • Deadlines: [Specific Deadlines for Handover, Return, and Reporting]

23. Notices

  • Formats: Written, email, certified mail.
  • Addresses:
    • Provider: [IT Service Provider Business Address], [IT Service Provider Email Address]
    • Client: [Client Business Address], [Client Email Address]
  • Deadlines: [Notice Deadlines]

24. General Provisions

  • Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
  • Entire Agreement: This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications and proposals, whether oral or written.
  • Assignment: This Agreement may not be assigned by either party without the prior written consent of the other party, except in connection with a merger, acquisition, or sale of all or substantially all of its assets.
    • Notice of Assignment/Subcontracting: [Address how notice of assignment or subcontracting obligations must be handled under applicable Kentucky statutes]

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

[IT Service Provider Legal Business Name]

By: [Name of Authorized Representative]

Title: [Title of Authorized Representative]

[Client Legal Business Name]

By: [Name of Authorized Representative]

Title: [Title of Authorized Representative]

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