Are state and local government contracts governed by the same rules as federal contracts?

UPDATED: Aug 8, 2012

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UPDATED: Aug 8, 2012Fact Checked

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Jeffrey Johnson

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Aug 8, 2012

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

UPDATED: Aug 8, 2012

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Aug 8, 2012Fact Checked

Many of the rules that govern state and local government contracting are modeled after the Federal rules. Most states and localities have rules that require some form of competition before the state or local government awards a contract. Many states and localities limit the availability of true breach of contract damages through the inclusion of “changes” and “termination for convenience” clauses.

There are many important distinctions in states and localities contract practices that firms must take into account. Unfortunately, there are so many differences in procurement rules from state to state and locality to locality that makes it impossible for us to cover here.
A firm wishing to do business with a state or local government must pay particular attention to the rules that govern procurements (e.g., the rules of competition), claims entitlement and pricing, and dispute resolution.

It is our strongest recommendation that prior to rushing to bid on any Government contract that you turn to an attorney to advise you on the special restrictions and complexities involved or if you expect any parts of the transaction to require special treatment in this very complex area of law. Otherwise you may “win” a contract, only to learn a very expensive lesson instead of earning a profit.

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Jeffrey Johnson

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Insurance Lawyer

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

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