How much does a contractor bond cost in New Mexico?
The New Mexico Regulation and Licensing Department Construction Industries Division (CID) requires contractors to post a $10,000 surety bond as part of the licensing process to operate in the state.
The surety company issuing the bond determines your premium rate, which is the percentage of the total bond amount you pay as the premium. During the application process, the surety company evaluates your personal credit, financial statements, industry experience, and licensing history.
EZ Surety can issue premiums for New Mexico contractor license bonds for as low as 1% of the total bond amount for applicants with standard credit. If your credit is below average, we can still offer a competitive rate for your contractors license bond.
Why are contractor bonds important in New Mexico?
Contractor license bonds hold licensed contractors accountable for the quality of their work and protect the public from damages they’ve incurred due to the contractor’s violation of licensing laws.
When the surety company issues the bond, they provide a financial guarantee to the state that the contractor will comply with the regulations set forth in NMSA 1978, Section 60-13-43. If the contractor violates these regulations, causing a loss to the consumer, the consumer can file a claim against the bond.
If the claim is valid, the surety company will cover the costs to repair the damage up to the amount of the bond. The contractor is then liable to reimburse the surety company for all damages paid.
How do I get my general contractor’s license in New Mexico?
To obtain your general contractor’s license in New Mexico you must meet the New Mexico CID licensing requirements by completing the following steps:
- Complete the license application form
- Provide a general work experience affidavit
- Pass the business and law exams
- Provide proof of workers’ compensation insurance
- Pay the $30 application fee and $6 certificate fee
- Post the $10,000 surety bond