New Mexico Contractor Bonds$10,000-$20,000 CID Requirements

Yes, New Mexico requires surety bonds for contractor licensing through the Construction Industries Division (CID). General Contractors (GB-98) require a $20,000 bond. Residential contractors and specialty contractors require bonds ranging from $10,000 to $20,000 depending on classification.

New Mexico contractor bond costs range from $200-$800 annually. The $10,000 bond costs $200-$400/year with good credit. The $20,000 GB-98 bond costs $400-$800/year. Contractors with excellent credit often qualify for rates as low as 2% of the bond amount.

The GB-98 license is New Mexico's General Building Contractor license allowing unlimited commercial and residential construction. It requires a $20,000 surety bond, proof of financial responsibility, passing trade and business exams, and meeting experience requirements through the CID.

The New Mexico Construction Industries Division (CID) under the Regulation & Licensing Department regulates contractors. CID enforces licensing requirements, bonding, insurance, and compliance with the Construction Industries Licensing Act (NMSA 1978, Chapter 60, Article 13).

New Mexico has multiple license types: GB-98 (General Building), GF-98 (General Framing), EE-98 (Electrical), MM-98 (Mechanical), FF-98 (Fire Protection), PP-98 (Plumbing), and many specialty classifications. Each classification has specific bonding and experience requirements.

New Mexico contractor bonds can be issued within 24-48 hours for applicants with good credit. The application requires business information, personal credit authorization, and details about your CID license classification. Bonds are delivered electronically for immediate filing.

Yes, contractors with credit challenges can obtain New Mexico bonds through specialized programs. Rates are higher (typically 3-10% of bond amount) and may require collateral for bonds over $50,000. Most applicants with credit scores above 600 can get approved.

No, New Mexico does not have reciprocity with other states. Contractors must obtain a separate New Mexico CID license with its own bonding, exam, and experience requirements, even if licensed in neighboring states like Texas, Arizona, Colorado, or Utah.

When a claim is filed, the surety investigates to verify validity. Valid claims are paid up to the bond amount, and the contractor must reimburse the surety for all paid amounts plus costs. Claims can impact future bonding ability and may result in license suspension by CID.

New Mexico contractor bonds have annual or biennial terms matching your license renewal cycle. Continuous bond coverage is required to maintain an active CID license. Renewal premiums may decrease with improved credit and clean claims history.