New Mexico Contractor Bond License Guide
New Mexico requires contractors to obtain a contractor bond to become licensed. The amount for these bonds varies depending on the type of contractor and project. These bonds can be issued instantly online for a set premium.
Why are contractor bonds required in New Mexico?
Contractors in New Mexico are required to post surety bonds prior to starting work. These bonds ensure the principal (contractor) will abide by all applicable rules and legislation outlining the classification-specific work, in addition to protecting consumers from damages caused by negligent or faulty work. Obligees (New Mexico government entities requiring the bond) place the liability on the principal.
Affected contractors can file a claim against the surety bond; if found to have validity, the surety (the company that financially backs the bond) will pay the claim up to the bond’s full amount. However, the principal is required to reimburse the surety in full for any money paid out.
New Mexico Contractor License Bonds
As required by the state, contractors must post a $10,000 bond for a $100 premium. This bond has a one-year term, but customers can save time and money by purchasing it for multiple years upfront with a multi-year discount.
Additional steps must be submitted for applicants to obtain a New Mexico Contractor License:
Determine what classification of license and/or certification is required to work
Check proposed name on the license with PSI before registering it on a license
Submit license application
Proof of passing business and law exam score from a CID approved school OR a qualifying party certificate including proof of at minimum thirty percent common ownership of the licensed entities
New Mexico tax ID number with official stamp and certificate
Registration with the New Mexico Secretary of State (if corporation, limited partnership, limited liability partnership or limited liability company)
Self-addressed envelope to use to return the application in case of rejection or to send the new license
The New Mexico Contractor License must be submitted to:
PSI 2820 Broadbent Pkwy NE Suite E&F, Albuquerque, NM 87107 (877) 663-9267
New Mexico Contractor Consumer Protection Bonds
For a $100 premium, contractors are required by the state to post a $10,000 bond for a one-year term. 25% multi-year discounts are offered to customers who purchase multiple years upfront.
City of Albuquerque Contractor Bonds
Contractor license bonds are required in the City of Albuquerque. Bond amounts will vary by the type of contractor and cost of construction, but bonds can be purchased for a one-year term.
Contractors in Albuquerque must post a $10,000 bond for a $100 premium.
A $5,000 surety bond is required for contractors to work in Albuquerque. This can be purchased for a $100 premium.
Applicants must provide proof of $2,000,000 minimum general liability insurance coverage as required by City Ordinance. Excavator contractors must provide a copy of their State License GF-09, GF-98, MM-98, EL-01, or EE-98.
More details can be found on the City of Albuquerque’s website.
Search all contractor bonds in New Mexico
Over the years, our bonding experts have put together the most comprehensive surety bond library. Most of our contractor bonds can be purchased instantly online in only a few minutes.
Use the list on the right below to browse all of our available contractor bonds in New Mexico You can also try searching by bond amount, obligee, or bond name.