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

In New Mexico, contracts for home services and remodeling projects must comply with both state statutes and local ordinances, with particular attention to the Construction Industries Licensing Act (CILA). Contractors performing work valued at $500 or more (including labor and materials) are legally required to hold a valid New Mexico contractor’s license appropriate to the project scope. Written contracts are standard and should clearly itemize scope of work, materials, timelines, total cost, payment schedules, and warranty terms. State law prohibits contractors from requesting more than one-third of the contract price as a down payment before work begins. Liability and workers’ compensation insurance are mandatory, and proof must often be provided to property owners. Contracts should also address risk allocation for property damage, delays, or unforeseen conditions. Dispute resolution clauses commonly favor mediation or arbitration before litigation, reflecting New Mexico’s preference for alternative dispute resolution in construction matters. Compliance with local building codes, permitting requirements, and inspection protocols is essential, and failure to do so can void contract enforceability or expose parties to penalties. Homeowners have a statutory right to cancel certain contracts within three business days, and contractors must provide notice of this right. Clear documentation and adherence to these requirements help mitigate payment and performance risks and are crucial for successful project execution in the New Mexico home services and remodeling sector.