Maryland IT service contract template
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How Maryland IT service contract Differ from Other States
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Maryland requires IT service contracts to strictly comply with its Personal Information Protection Act for data handling.
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Automatic renewal clauses in Maryland contracts must provide clear terms and advance notice to the customer per state law.
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Maryland places specific restrictions on indemnification clauses, limiting excessive liability shifting in service agreements.
Frequently Asked Questions (FAQ)
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Q: Is electronic signature valid for IT service contracts in Maryland?
A: Yes, electronic signatures are legally recognized under Maryland law, provided both parties consent and appropriate authentication is used.
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Q: Are there special cybersecurity requirements for Maryland IT contracts?
A: Yes, contracts must address cybersecurity practices compliant with Maryland’s data protection laws and industry standards.
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Q: Can a Maryland IT service contract limit liability for data breaches?
A: Limits are allowed but cannot exclude gross negligence or willful misconduct. Some protections are required by Maryland statute.
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Maryland IT Service Contract
This Maryland IT Service Contract (the "Agreement") is made and entered into as of [Date], by and between:
[Provider Name], a [State of Incorporation] corporation with its principal place of business at [Provider Address] ("Provider"), and
[Client Name], a [State of Incorporation] corporation with its principal place of business at [Client Address] ("Client").
1. Scope of Services
Option A: Provide a detailed description of IT services, including but not limited to network design and management, software development or customization, hardware procurement and installation, cloud solutions, cybersecurity measures, system integration, help desk/support services, data backup and disaster recovery, and ongoing maintenance and updates.
Option B: Refer to Exhibit A for a detailed description of the IT services.
2. Service Level Agreement (SLA)
Option A: Response times, resolution timeframes, uptime guarantees, escalation procedures, routine maintenance windows, and measurable performance indicators will be specified in Exhibit B.
Option B:
Response Time: [Specify Response Time]
Resolution Timeframe: [Specify Resolution Timeframe]
Uptime Guarantee: [Specify Uptime Percentage]%
3. Work Site and Access
Option A: Onsite services will be performed at [Client Work Site Address(es)]. Provider personnel must comply with all Client facility security guidelines.
Option B: Services will be performed remotely. Remote access policies are outlined in Exhibit C.
4. Client Responsibilities
List responsibilities for providing access credentials, physical/electronic resources, points of contact ([Client Contact Name], [Client Contact Title], [Client Contact Email], [Client Contact Phone]), prompt cooperation, and compliance with preparatory steps required by the Provider.
Client must notify provider of any planned downtime or maintenance on systems that may affect the performance of the IT services.
5. Project Timeline and Deliverables
Option A: Project timeline, milestones, progress reporting requirements, review and testing milestones, and acceptance processes are detailed in Exhibit D.
Option B: Project Start Date: [Start Date]; Project Completion Date: [Completion Date]
6. Deliverables
Technical specifications, interoperability requirements for existing systems, documentation standards, user training materials, and data migration plans (if applicable) are detailed in Exhibit E.
All deliverables must meet industry standards and comply with relevant Maryland regulations.
7. Payment Terms
Option A: Total fees: [Total Fee Amount]. Payment milestones are specified in Exhibit F.
Option B: Hourly rate: [Hourly Rate Amount]/hour. Monthly rate: [Monthly Rate Amount]/month.
Invoicing schedule: [Invoicing Schedule].
Payment methods: [Payment Methods].
Late payment penalty: [Late Payment Penalty]% per month.
All fees are subject to Maryland sales tax where applicable.
8. Intellectual Property
Option A: Custom software, source code, configurations, documentation, and data developed during the engagement will be owned by [Client/Provider]. Licensing and usage limitations are outlined in Exhibit G. Provider retains ownership of pre-existing tools or reusable modules.
Option B: All intellectual property rights shall be determined in accordance with Maryland law.
9. Confidentiality and Data Security
Both parties agree to maintain the confidentiality of confidential information and comply with Maryland's Personal Information Protection Act (PIPA), state cybersecurity notification laws, and any applicable sector-specific privacy requirements.
Provider must maintain commercially reasonable cybersecurity standards and provide incident response procedures. Provider will maintain cyber liability insurance of no less than [Insurance Amount].
10. Backup, Disaster Recovery, and Business Continuity
Backup, disaster recovery, and business continuity solutions are detailed in Exhibit H, tailored to Maryland requirements.
This section includes responsibilities for restoration, frequency of backups, and archiving policies.
11. Compliance
Industry-specific compliance or registration requirements (e.g., PCI-DSS, HIPAA if serving Maryland healthcare clients) are listed in Exhibit I. IT personnel’s compliance with background checks or certifications is required if mandated by Maryland contract or government standards.
Compliance with Maryland law is required at all times.
12. Quality Assurance and Defect Remediation
Maintenance windows, patch/update cycles, timeframes for bug fixes or security vulnerabilities, and end-of-life transition support are specified in Exhibit J.
Provider will provide remediation for any defects or errors discovered within [Number] days of notification.
13. Limitation of Liability
Exclusion of provider liability for indirect or consequential damages.
Minimum insurance amounts: cyber liability ([Insurance Amount]), professional indemnity ([Insurance Amount]), and general liability ([Insurance Amount]).
14. Force Majeure
Procedures for service suspensions or modifications due to force majeure or regulatory/legal changes specific to Maryland (such as state data breach notification requirements).
The party affected by force majeure must provide written notice to the other party within [Number] days of the occurrence.
15. Contract Amendments
Amendments, scope changes, and price adjustments require mutual written agreement, with a Maryland-specific notice period of [Number] days.
16. Termination
Termination processes: for convenience, for cause, for nonpayment, insolvency, or violation of Maryland law, with a required notice period of [Number] days.
Transition assistance obligations: [Description of transition assistance].
17. Return of Information
Procedures for return or destruction of confidential information, data, hardware, or software licenses upon contract end, ensuring compliance with Maryland data disposal and privacy laws.
18. Maryland Tax and Employment Compliance
State tax withholding, E-Verify or immigration compliance if using contractor staff in Maryland.
19. Dispute Resolution
Procedures for service suspensions or modifications due to force majeure or regulatory/legal changes specific to Maryland (such as state data breach notification requirements).
Good-faith negotiation, non-binding mediation, and, if needed, arbitration located in Maryland or submission to the exclusive jurisdiction of Maryland state or federal courts, explicitly designating Maryland law as governing law.
The location of any mediation or arbitration shall be [City, Maryland].
20. Maryland Procurement Compliance
Compliance with Maryland-specific procurement restrictions, public bidding disclosure requirements if the Client is a state entity, and electronic signature/record rules under Maryland’s Uniform Electronic Transactions Act.
21. Warranties
Warranties for IT services, covering workmanship, software/hardware compatibility for a stated term of [Number] months, and cybersecurity performance, with clarification of warranty exclusions.
All warranties must be in writing and delivered to the client.
22. Non-Solicitation
Non-solicitation and non-recruitment covenants for Client or Provider staff during and post-engagement as allowed by Maryland law. The restricted period is [Number] months after termination of this Agreement.
23. Public Reference
Public reference or portfolio usage rights for the Provider subject to Client approval and Maryland publicity law.
24. Exhibits
Exhibit A: Scope of Services
Exhibit B: Service Level Agreement (SLA)
Exhibit C: Remote Access Policies
Exhibit D: Project Timeline and Deliverables
Exhibit E: Deliverables Details
Exhibit F: Payment Milestones
Exhibit G: Intellectual Property Details
Exhibit H: Backup, Disaster Recovery, and Business Continuity Details
Exhibit I: Compliance Requirements
Exhibit J: Quality Assurance and Defect Remediation Details
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
[Provider Name]
By: [Provider Representative Name]
Title: [Provider Representative Title]
[Client Name]
By: [Client Representative Name]
Title: [Client Representative Title]