Surety bonds • New Mexico
New Mexico Public Works Bonds (NMSA § 13-4-18): Performance and Payment
Under NMSA § 13-4-18, contractors on New Mexico public construction contracts over $25,000 must provide a performance bond and a payment bond, each equal to 100% of the contract price. Purchasing officials may reduce either bond to no less than 50% under specified conditions.
This guide covers the bonds, who they protect, and cost. Blake Insurance Group is an independent agency and does not give legal advice; a licensed agent can help contractors set up bonding.
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Required bonds
| Bond | Requirement |
|---|---|
| Performance bond | 100% of the contract price on contracts over $25,000 |
| Payment bond | 100% of the contract price, for those supplying labor and material |
| Reduction | May be reduced to no less than 50% under specified conditions |
| Smaller contracts | Agencies may require bonds at their discretion |
Source: NMSA § 13-4-18.
Who the bonds protect
The performance bond protects the public owner. The payment bond protects everyone supplying labor and material to the contractor or its subcontractors. See our performance bond and payment bond guides.
How much New Mexico contract bonds cost
Contract bonds are priced as a percentage of the bond amount, commonly about 0.5% to 3% based on the contractor’s finances and experience (NASBP).
New Mexico public works bond FAQs
When are bonds required on New Mexico public works?
On construction contracts over $25,000.
How much are New Mexico public works bonds?
100% of the contract price for both the performance and payment bonds.
Can New Mexico reduce public works bonds?
Yes, to no less than 50% of the contract price under specified conditions.
Related guides
Important information
Compensation. The link in the partner quote box near the top of this page is sponsored, and Blake Insurance Group may be paid if you make a purchase. Sponsored placement does not affect the other information on this page.
Independent agency. Blake Insurance Group LLC is an independent insurance agency. Licensed insurance producer NPN 16944666. Licensed states: AZ, AL, TX, CA, NY, OH, FL, NC, VA, GA, OK, NM, IA, KS, MI, NE, SC, SD, WV, IL, NJ, PA, TN, and WA. Which insurance companies we can quote depends on our current appointments, the product, and your state. Mentioning a company on this page does not mean we represent it.
Cost figures. Published averages and ranges are cited from the sources named, as of the dates shown. They are not quotes and may not reflect your price, which depends on the insurer, the surety, your credit, the bond type, and underwriting.
Availability. Coverage, prices, discounts, and eligibility vary by insurer, state, and applicant, and are subject to underwriting. The issued policy controls.
Your next step
Tell us about your New Mexico public project, and a licensed agent will help you set up bonding.
