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

In New Mexico, contracts for home services—such as repairs, remodeling, and maintenance—are governed by a combination of state statutes and local regulations. Contractors performing work valued at $500 or more must hold a valid New Mexico contractor’s license issued by the Construction Industries Division (CID), and certain trades (e.g., electrical, plumbing, HVAC) require additional certifications. Written contracts are strongly recommended and often required for larger projects, and must clearly outline scope of work, materials, timelines, payment schedules, and warranty terms. State law (notably the New Mexico Homeowner Protection Act) mandates that contracts include the contractor’s license number and a notice of the homeowner’s right to cancel within three business days for door-to-door sales. Insurance requirements typically include general liability and, if applicable, workers’ compensation coverage. Payment terms often involve an initial deposit, with progress payments tied to project milestones; by law, deposits may not exceed one-third of the total contract price unless materials must be special-ordered. Common risk factors include delays due to permitting or inspection requirements, which vary by municipality. Dispute resolution is frequently addressed through mediation or arbitration clauses, as New Mexico courts encourage alternative dispute resolution for construction matters. Local procurement practices may further require compliance with municipal codes and, for public projects, adherence to the state procurement code and prevailing wage laws.