Contractors who wish to operate in the state are required to purchase a New Mexico Contractor License Code Bond as a licensing requirement. This requirement is established by the New Mexico Regulation and Licensing Department (RLD), Construction Industries Division.
This surety bond is an agreement between three parties: the principal (the contractor), the obligee (the New Mexico RLD), and the surety company. The code compliance bond guarantees that the contractor will operate their business in accordance with New Mexico Building Codes and the contractor’s construction contract.
If the principal fails to meet their obligations or acts fraudulently, the injured party can file a claim against the principal’s bond. After an investigation into the validity of the claim, the surety may compensate the injured party up to the full bond amount. Business practices that may be valid reasons for claims can include faulty construction, physical harm, acts of fraud, or non-compliance with contract terms.
Unlike insurance policies, bonds hold the principal financially liable. This means that the principal is responsible for reimbursing the surety for all claims, plus additional fees and expenses incurred.
New Mexico requires contractors performing work within its boundaries to be licensed and (as a part of those licensing requirements) have a New Mexico Contractor License Code Bond.
As per the Construction Industries Licensing Act of New Mexico, a contractor is described as any individual who takes on contracting work either through bidding or other methods, independently or with others. Essentially, a contractor refers to any individual who conducts construction work as an independent business.
The New Mexico contractor license has a duration of three years starting from the issuance date and ending on the final day of the month in which it was granted. The three-year term typically applies to the code compliance bond as well.
The New Mexico Contractor License Code Bond has a bond amount of $10,000. Your premium rate—a small percentage of the bond amount—is determined by your credit standing, experience, and background.
With excellent credit, applicants may see quotes as low as 1% of the bond amount. For non-standard credit, EZ Surety Bonds works with various surety companies to find you the best quotes. It is important to note that the soft credit check for your free bond quote will not harm your credit score.
The obligee, or entity that requires the New Mexico CLB, is the New Mexico Regulation and Licensing Department, Construction Industries Division. Contractor licenses are processed through the New Mexico PSI. Here is their contact information:
PSI
2820 Broadbent Parkway Northeast,
Suite E&F
Albuquerque, New Mexico 87107
Phone: 877-663-9267
Getting a bond through EZ Surety Bonds is quick and convenient. Simply visit our website and fill out our quick online form. Within 24 hours, one of our friendly surety experts will contact you regarding your free quote.
Our surety experts are always happy to assist. If you have any further questions, please do not hesitate to contact us at bonds@southcoastsurety.com or call us at 1-800-361-1720.
Obtaining a contractor license to operate in New Mexico requires several steps. Here's a quick rundown:
Note that you will also need to pay either a $300 or $150 fee, depending on the license type (as of 2023).
The cost of acquiring a New Mexico Contractor License Code Bond, which has a bond amount of $10,000, is determined by your credit history and background. Optimal applicants may find a premium rate quote for as little as 1% of the full bond amount.
Regardless of your credit score, you can request a free quote from EZ Surety Bonds. Remember that the soft credit check to quote your bond will not harm your credit score.
After you purchase your New Mexico Contractor License Code Bond, the original document will be mailed to you. Some obligees approve of electronic copies, while others may require you to file the original bond with the principal’s wet signature. Every obligee has its own unique filing requirements, so be sure to confirm these requirements before doing anything with the bond.
You’ll know if you need a surety bond because some entity will have required you to obtain one. They must also inform you of which specific bond type you’ll need. There are thousands of bonds across the country, all of which vary by state and industry.
Visit EZSuretyBonds.com to browse hundreds of bonds by state, type, or industry.
