Need a Plumbing Contract in New Mexico? AroundWire Can Help

In New Mexico, plumbing service contracts—whether for public or private sector projects—are governed by a combination of state statutes, local regulations, and industry norms. Contractors must hold a valid New Mexico journeyman or contractor plumbing license issued by the Construction Industries Division (CID), and all work must comply with the New Mexico Plumbing Code, which is based on the International Plumbing Code with local amendments. Contracts typically require proof of active general liability insurance (often with minimum coverage limits dictated by the project size) and workers’ compensation coverage for employees. Prevailing wage requirements may apply on public projects under the New Mexico Public Works Minimum Wage Act. Indemnification clauses, clear scopes of work, and detailed payment schedules—often including retainage (commonly 5–10%)—are standard. Payment terms generally range from net 15 to net 30 days after invoice approval, but prompt payment statutes apply to public contracts. Risk factors include strict adherence to permitting and inspection requirements; failure to comply can result in penalties or contract termination. Dispute resolution provisions often favor mediation or arbitration before litigation, in line with local contracting norms. Additionally, contractors must ensure compliance with New Mexico’s anti-corruption and procurement statutes, particularly for state-funded projects. Retainage release and final payment are contingent on successful inspection and approval by local authorities.