Need a Home Services / Electrical Work Contract in New Mexico? AroundWire Can Help

In New Mexico, contracts for home services involving electrical work are governed by both state statutes and the New Mexico Administrative Code. All electrical contractors must hold a valid New Mexico Electrical Contractor's License (EE98 or appropriate classification), and all electricians working on site must possess individual journeyman or apprentice licenses. Contracts must clearly specify the scope of work, materials to be used, project timelines, and total costs, as required by the New Mexico Construction Industries Licensing Act. State law mandates written contracts for projects exceeding $7,200. Contractors are required to carry general liability insurance (minimum $300,000 per occurrence) and, if employing workers, workers’ compensation coverage. Permits must be obtained for most electrical work, and inspections are required at various project stages. Payment terms often include an initial deposit (typically capped at one-third of the contract price), with the balance due upon completion and satisfactory inspection. New Mexico statutes prohibit waiving lien rights in advance of payment, so contractors retain the right to file a mechanics’ lien for unpaid work. Dispute resolution is commonly addressed through mediation or arbitration clauses rather than litigation, in line with local contracting norms. Risk factors include compliance with the New Mexico Electrical Code and potential penalties for unlicensed work, which can void contract enforceability and result in fines.