Need a Home Services / Remodeling / Interior Renovation Contract in New Mexico? AroundWire Can Help

In New Mexico, contracts for home services, remodeling, and interior renovation must comply with both state and local regulations. Contractors performing work valued at $7,200 or more (including materials and labor) are required to hold a valid New Mexico contractor’s license issued by the Construction Industries Division (CID). Contracts must be in writing and clearly detail the scope of work, total price or method of calculation, payment schedule, estimated start and completion dates, and procedures for change orders. State law requires inclusion of a three-day right to cancel for residential contracts. Liability insurance and, where applicable, workers’ compensation coverage are mandatory, and proof may be requested by clients. Contracts must also address permit responsibilities, as most remodeling and renovation work requires building permits under local codes. Payment schedules often follow progress milestones, but it is customary and prudent to limit upfront deposits to no more than one-third of the total contract value. New Mexico statutes prohibit “pay-if-paid” clauses in residential construction, ensuring subcontractors’ payment rights. Dispute resolution typically favors mediation or arbitration before litigation, and many contracts specify local jurisdiction for legal matters. Risk factors include potential delays in permitting or inspections and exposure to mechanic’s liens if payment disputes arise. Awareness of the New Mexico Unfair Practices Act is important, as it governs deceptive trade practices and contract disclosures in home improvement services.