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New Mexico Contractor License Bond

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What is a New Mexico Contractor License Bond?

Several states and municipalities require contractors working in plumbing, heating, and construction to obtain a license to do business. One requirement of the licensing process is securing a contractor license bond. A New Mexico contractor license bond is necessary for contractors working in the state, as it safeguards customers, employees, and the municipality from fraud, non-payment, and projects that do not meet building codes.

A New Mexico contractor license bond is a contract between three parties. The principal is required to obtain the bond, while the surety company provides the bond as a form of credit. The obligee is the state or local licensing authority that requires the bond to be posted.

What Does a New Mexico Contractor License Bond Cost?

A New Mexico contractor license bond of $10,000 is required for licensing in the state, but contractors are not responsible for paying the full bond amount. The surety company providing the bond charges a small percentage of the bond total, typically between 1 and 10% of the bond.

The percentage you pay, known as the bond premium, is determined based on your personal credit history. Contractors who have had issues like bankruptcy, court judgments, or tax liens in the past are a greater risk to the surety company. A higher bond premium is charged to help offset that risk. This is because bond claims are initially paid by the surety company, but you as the contractor are responsible for repayment for any legitimate claims.

How Do I Get a New Mexico Contractor License Bond?

You can easily start the process of obtaining a New Mexico contractor license bond by submitting a brief online application. Here you provide details about your contractor license, your business, and your finances. After reviewing the application, the surety company provides a quote for your bond premium.

Frequent Questions

How much does a bond cost?

Pricing is a percentage of the contractor license bond amount that’s required of you, which is based on your personal credit. Use our bond pricing tool to to get a quick ballpark estimate.

Can I get bonded with bad credit?

Yes. You can apply and get bonded with bad credit. Our agency is the largest writer of bonds in the county, which allows us to approve contractors for bonds when other agencies cannot.

Are these the same as contract bonds?

No. Contractor license bonds ensure you will abide by the laws of your state, city or municipality when performing contracting work. Contract bonds guarantee public projects will be completed properly and are a separate bond type. You can learn more about contract surety bonds by visiting the contractor bond center.

Do I need a state or local bond?

It depends on who is requiring the bond of you, the local municipality, county or state. Depending on your location, it is possible you may need both a local and state bond, as contractor license bond requirements can vary drastically. You can select your state to see a full list of contractor license bond requirements.

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Jennifer Henson
Our company has been with JW Surety for several years now so when we needed to obtain a bond for a new company, we immediately went to them for help. Our rep, Melissa, was extremely helpful and prompt which made the process extremely easy for me.
David Tillotson
Trying to get a local Surety Bond was like driving a car on three tires. I searched Surety Bonds and found JW Surety Bonds. I got online and filled out the information and with in 30 minutes received a response from Melissa. She was informative, friendly and helpful. One more super satisfied customer.

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