What is a New Mexico contractor license bond?
Individuals and businesses seeking a contractor’s license in New Mexico need a contractor license bond. The set bond amount is $10,000, regulated by the New Mexico Regulation and Licensing Department, Construction Industries Division (CID).
A contractor bond guarantees that clients receive compensation for damages if a contractor fails to comply with state and local licensing laws. The New Mexico State legislature enacted Statute 60-13-12 to ensure that contractors engage in ethical business practices.
Learn more about how contractor license bonds work in our complete guide.
Get Your New Mexico Contractor License Bond:
How much does a contractor bond cost in New Mexico?
The $10,000 contractor license bond generally costs $100 per year. Contractor licenses in New Mexico are valid for three years after the date of issuance and expire on the last day of the month of issue. Licenses and bonds must be renewed on or before their expiration date to remain valid and for contractors to continue work legally.
Frequently Asked Questions
If you’re a contractor with employees, you need a workers’ compensation policy. If you have a corporation or LLC, you must obtain workers’ compensation insurance even if you don’t have employees. Only contractors acting as sole ownerships with no employees (besides the owners) are exempt. General liability coverage isn’t required in New Mexico.
To avoid claims against your bond, follow all New Mexico building code requirements. Claims can be costly in time and money. If a client makes any valid complaint against your work, address it immediately before it turns into a bond claim.
Get Your Contractor License Bond in New Mexico
ZipBonds offers the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward. Apply online, email email@example.com or call 888.435.4191 to speak with an agent directly.
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.