All licensed contractors in New Mexico are required to carry a $10,000 contractor license bond. This bond must be filed with the Construction Industries and Manufactured Housing Division (“CID”) of the New Mexico Regulation & Licensing Department. With Jet the bond price is $100 for all contractors.Buy Now
There are 24,000 contractors in New Mexico that need this bond to keep their license active. All new contractors must purchase the contractor bond in order to have their license processed by the CID.
The cost of a contractor bond in New Mexico for one year is $100.
|New Mexico Contractor Bond Cost|
|Bond Type||Monthly | Annual|
|Bond Type: $10,000 Contractor License Bond||Monthly | Annual: $10 | $100|
Jet offers the bond with the options to pay for it monthly or annually, and never charges a broker fee for license bonds.
Generally, anyone performing construction related work is required to be licensed with the CID. Some trades are exempt from getting a license, including: fencing, fixtures/cabinets/millwork, flooring, painting, sandblasting, tile, and welding. Services like cleaning, hauling, and yard work do not need to maintain a license either.
Contractors performing minor work or repairs that total less than $7,200 total a year are not required to get a license in New Mexico. The State offers a handyman certificate that can be obtained by the CID. A handyman certificate can be obtained from the CID in order to perform work under $7,200 without a license.
This bond satisfies the CID’s financial responsibility requirement in order for the contractor to be licensed. In 2009, the surety bond replaced three previously allowed options a contractor could utilize: a cash collateral assignment, a compliance bond, or an audited financial statement.
The contractor bond is a form of consumer protection. In New Mexico State, the bond’s purpose is to provide monetary restitution to the consumer resulting from contractor code violations by the contractor. A contractor should diligently follow building code and abide by contracts they enter in order to avoid any claim on the bond.
There is documentation from the Construction Industries Division referring to this bond as the Consumer Protection Code Bond or Contractor License Code Bond, however, contractors and insurance companies commonly refer to this as a Contractor License Bond.
At Jet, we handle the bond from start to finish. There is no middle man at any point in the process. You only need to call one phone number to handle anything from getting a quote, filing the bond, or handling a claim. No other company makes bonding this easy and carefree.
All licensed contractors with employees are required to hold a workers’ compensation policy. It is important to note, entities like a corporation or LLC are required to carry workers’ compensation insurance even if they have zero employees.The only contractors exempt from workers’ comp are sole ownerships who have no employees besides the owner themselves. The CID requires the sole owner to complete a specific form verifying they will not be hiring any employees.
General liability coverage is not required by the state of New Mexico. However, to get on certain jobs a contractor must carry this coverage to protect third parties from damages arising out of work they perform.
Contract and permit bonds are required to perform certain state, county, or city jobs.