Need a Commercial Services Contract in New Mexico? AroundWire Can Help

In New Mexico, commercial services contracts—covering activities such as facility management, janitorial, maintenance, landscaping, and related services—are typically governed by both state procurement codes and local ordinances. Contracts must comply with the New Mexico Procurement Code (NMSA 1978, Sections 13-1-28 through 13-1-199), which requires competitive bidding or proposal processes for most public-sector engagements. Vendors are generally required to hold a valid New Mexico business license and, depending on service type, may need additional certifications (e.g., contractor’s license for building maintenance or landscaping). Insurance requirements are stringent: contractors are commonly obligated to carry general liability, workers’ compensation, and automobile liability insurance, with the state or contracting agency named as an additional insured. Indemnification clauses are standard, shifting certain liabilities to the contractor. Payment terms often follow the state’s Prompt Payment Act, mandating payment within 30 days of invoice approval. Prevailing wage laws may apply for certain publicly funded projects. Risk factors include strict adherence to service standards and performance metrics, with penalties for non-compliance. Dispute resolution typically favors negotiation or mediation before litigation, and New Mexico law will govern contract interpretation. Additionally, contracts may require compliance with local procurement preferences, such as resident business or veteran business preferences, which can influence award decisions and contract structuring.