Need a HVAC Contract in New Mexico? AroundWire Can Help

In New Mexico, HVAC contracts—whether for public or private sector projects—must comply with state-specific licensing, regulatory, and procurement requirements. Contractors are required to hold a valid New Mexico Mechanical Contractor license (MM-1 or MM-98 classification) issued by the Construction Industries Division (CID), and all technicians must have appropriate journeyman certification. Public contracts typically require adherence to the New Mexico Procurement Code, mandating competitive bidding and transparency in selection. Prevailing wage laws apply to public works projects, and contracts often stipulate Davis-Bacon wage compliance. Insurance requirements are stringent: contractors must carry general liability, workers’ compensation, and, for larger projects, performance and payment bonds. Contracts frequently specify detailed scopes of work, performance standards, and equipment specifications in line with state and local building codes, including energy efficiency mandates. Payment terms commonly follow a progress billing structure, with retainage (up to 10%) held until final completion and acceptance. Risk factors addressed in contracts include indemnification clauses, warranty obligations (typically one year minimum), and clear procedures for change orders. Dispute resolution in New Mexico often favors mediation or arbitration before litigation. Additionally, contracts may reference the New Mexico Subcontractors Fair Practices Act, which impacts payment timing and change order processing. Local procurement norms favor clear documentation and compliance with both CID regulations and municipal permitting requirements.