New Mexico construction independent contractor agreement template

New Mexico Construction Independent Contractor Agreement

This New Mexico Construction Independent Contractor Agreement (the “Agreement”) is made and entered into as of this [Date of Signing], by and between:

[Property Owner/Client Legal Name], residing at [Property Owner/Client Physical Address], hereinafter referred to as "Client,"

• Phone: [Property Owner/Client Phone Number]
• Email: [Property Owner/Client Email Address]

and

[Independent Contractor Legal Name], residing at [Independent Contractor Physical Address] or, if a business entity, [Independent Contractor Business Name], with its principal place of business at [Independent Contractor Business Physical Address], and holding New Mexico Contractor License No. [Contractor License Number], hereinafter referred to as "Contractor."

• Phone: [Independent Contractor Phone Number]
• Email: [Independent Contractor Email Address]

1. Scope of Work

The Contractor agrees to perform the following construction services (the "Work") for the Client: [Detailed Description of Construction Services, including Project Scope]. The Work shall be performed in accordance with the project plans and specifications attached hereto as Exhibit A [Reference to Architectural Drawings, Engineering Standards, and Applicable Building Codes for New Mexico]. The Work shall be performed at the following location: [Location of Work].

• Option A: Client will provide all materials.
• Option B: Contractor will provide all materials.
• Option C: Client and Contractor will each provide materials as specified in Exhibit B. [List of Materials Provided by Each Party].

• Option A: Contractor is responsible for providing all equipment necessary to perform the Work.
• Option B: Client will provide the following equipment: [List of Equipment Provided by Client].

The Client shall provide the Contractor with reasonable access to the Worksite to perform the Work. [Specific Site Access Needs]

2. Project Schedule

The Work shall commence on [Project Commencement Date] and be substantially completed by [Substantial Completion Date]. [Detailed Timeline and Key Milestones]. Substantial completion shall be defined as [Substantial Completion Criteria as Per New Mexico Law].

• Option A: Interim inspections shall be conducted at the following milestones: [List of Milestones for Interim Inspections].
• Option B: No interim inspections are required.

Final inspection shall be conducted by [Person/Entity Conducting Final Inspection] upon notification of substantial completion by the Contractor. Final handover shall occur upon successful completion of the final inspection and acceptance of the Work by the Client.

3. Payment

The Client shall pay the Contractor the following fee for the Work:

• Option A: Lump-sum payment of [Dollar Amount].
• Option B: Cost-plus fee. The cost of the Work plus a fee of [Percentage]% of the cost.
• Option C: Time and materials at a rate of [Dollar Amount] per hour plus the cost of materials.

Payments shall be made according to the following schedule: [Schedule of Progress and Final Payments].

• Option A: Retainage of [Percentage]% will be withheld from each progress payment and released upon final completion and acceptance of the Work.
• Option B: No retainage will be withheld.

The Contractor shall provide the Client with lien waivers and releases upon receipt of each payment.

Payment shall be made by [Approved Payment Methods].

The Contractor shall submit invoices to the Client at [Invoice Procedures]. All invoices shall be accompanied by supporting documentation.

The Contractor is responsible for the collection and remittance of New Mexico gross receipts tax (GRT).

Procedures for handling late, withheld, or disputed payments: [Detailed Procedures].

Change Order Procedures: Any modifications to the price, scope, or schedule of the Work shall be documented in a written change order signed by both parties and in compliance with NM Construction Industries Division (CID) rules.

4. Ownership and Risk of Loss

Ownership of all work product, materials, and site improvements shall transfer to the Client upon final completion and acceptance of the Work and final payment to the Contractor.

• Option A: The Contractor warrants the Work for a period of one (1) year from the date of final completion.
• Option B: The Contractor warrants the Work for a period of [Number] years from the date of final completion.
[Note: New Mexico residential construction requires a one-year minimum warranty]

The risk of loss or damage to the Work shall be borne by the Contractor until final completion and acceptance of the Work.

The Contractor is responsible for the disposal of all debris and surplus materials in accordance with local environmental laws.

5. Insurance

The Contractor shall maintain the following insurance coverage:

• General liability insurance with a minimum coverage limit of [Dollar Amount].
• Workers' compensation insurance (or evidence of valid exemption if sole proprietor).
• Option A: Builder's risk insurance with a coverage amount equal to the value of the Work.
• Option B: Client will maintain builder's risk insurance.
• Auto insurance if applicable.

The Contractor shall provide the Client with certificates of insurance naming the Client as an additional insured.

6. Compliance with Laws

The Contractor shall comply with all New Mexico state and local construction laws, including the New Mexico Construction Industries Licensing Act (CILA), prevailing wage laws (if applicable), OSHA and NM Occupational Health & Safety compliance, and all safety, environmental, and hazardous waste disposal regulations.

7. Independent Contractor Status

The Contractor acknowledges that this Agreement does not create an employment, partnership, or joint venture relationship. No federal or New Mexico personal income taxes, Social Security, or benefits will be withheld by the Client. The Contractor is fully responsible for all taxes, withholdings, and reports to New Mexico tax authorities. The Contractor represents that all required business registrations and local business licenses are valid and up to date.

8. Subcontractors

The Contractor shall obtain the Client's prior written approval before engaging any subcontractors. The Contractor shall be liable for the acts and omissions of its subcontractors. All subcontractors shall be properly licensed in New Mexico and hold necessary insurance.

9. Service Quality

The Contractor shall perform the Work in a good and workmanlike manner, in compliance with all applicable codes and standards. The Contractor shall correct any defects in the Work. [Warranty Provisions Required by New Mexico Law].

• Option A: A punch list shall be created prior to final payment.
• Option B: No punch list will be used.

10. Jobsite Conditions

The following jobsite conditions shall apply: [Site Access Hours, Utilities, Security Responsibilities, Damage Prevention and Repair, and Weather-Related Delays (e.g., monsoon or fire danger effects)].

11. Dispute Resolution

Any dispute arising out of or relating to this Agreement shall be resolved as follows: [Initial Negotiation, Possible Mediation, then Arbitration or Litigation in the Appropriate New Mexico Court]. This Agreement shall be governed by and construed in accordance with the laws of the State of New Mexico. The county of project location shall be the jurisdiction and venue for any legal proceedings.

12. Notices

All notices and communications required under this Agreement shall be in writing and delivered by [Methods: Certified Mail, Email, etc.] to the following addresses:

• Client: [Property Owner/Client Physical Address or Email]
• Contractor: [Independent Contractor Business Physical Address or Email]

13. Termination

This Agreement shall terminate upon the earlier of the following: (a) expiration of the term; (b) termination for cause; or (c) termination for convenience.

• Option A: Either party may terminate this Agreement for cause upon [Number] days' written notice.
• Option B: Either party may terminate this Agreement for convenience upon [Number] days' written notice.

Upon termination, the Contractor shall return all materials, tools, or confidential information to the Client. [Financial Consequences of Termination].

14. Indemnification

To the fullest extent permitted by New Mexico law, the Contractor shall indemnify and hold harmless the Client from and against any and all claims, damages, losses, and expenses arising out of or resulting from the Contractor's performance of the Work, except to the extent caused by the negligence of the Client. [Reflecting New Mexico’s Anti-Indemnity Statutes].

15. Miscellaneous

Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written.

Waiver: No waiver of any provision of this Agreement shall be effective unless in writing and signed by the waiving party.

Amendment: This Agreement may be amended only by a written instrument signed by both parties.

16. Attachments

The following exhibits are attached to and incorporated into this Agreement:

• Exhibit A: Project Plans and Specifications.
• Exhibit B: [Schedule of Values].
• Exhibit C: Insurance Certificates.
• Exhibit D: Required Licenses.
• Exhibit E: [Change Order Forms].
• Exhibit F: [Documentation of Any Special Local Requirements (e.g., Specific Albuquerque or Santa Fe City Code Addenda)].

17. Other Legal Requirements

Contractor shall comply with federal and state immigration laws (employment eligibility verification if workers are used on site).

If federally funded, Davis-Bacon or equivalent wage requirements apply.

Address confidential information, intellectual property of any custom designs, and publicity or photo use rights.

Contractor shall comply with New Mexico Construction Industries Division notification and inspection requirements and retention of records for statutory audit periods.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

____________________________

[Property Owner/Client Legal Name]

____________________________

[Independent Contractor Legal Name/Business Name]