New Mexico construction service contract template

New Mexico Construction Services Contract

This New Mexico Construction Services Contract (the “Contract”) is made and effective as of [Effective Date], by and between:

[Contractor Full Legal Name], whose address is [Contractor Address], with New Mexico Contractor License Number [Contractor License Number] (hereinafter referred to as "Contractor"),

and

[Client Full Legal Name], whose address is [Client Address] (hereinafter referred to as "Client").

1. Project Description and Location

The Project is located at: [Project Site Address]; Legal Property Description: [Legal Property Description].

Permitting Authority: [Permitting Authority].

2. Scope of Work

The Contractor shall perform the following construction services: [Detailed Description of Scope of Work, including design requirements (if applicable), engineering, site preparation, labor, materials, equipment, subcontracting arrangements, and intended construction method].

Reference is made to the attached plans and specifications, which are incorporated herein by reference and take precedence over general terms of this Contract in case of conflict.

3. Materials and Workmanship

All materials to be supplied by the Contractor shall be of the following brand, grade, and manufacturer (where required): [List of Materials].

All workmanship shall conform to the standards established by the International Building Code as amended by the State of New Mexico, and all relevant local ordinances, zoning, and environmental regulations.

4. Exclusions

The Contractor’s duties do not include:

Option A: Work outside the property boundary.

Option B: Hazardous material abatement (unless specifically included in the Scope of Work).

Option C: Client-supplied materials (unless otherwise agreed in writing).

5. Project Schedule

The Project shall commence on [Start Date] and shall achieve substantial completion by [Substantial Completion Date] and final completion by [Final Completion Date].

Milestones: [List of Milestones].

Timeline for Material Procurement: [Timeline].

Weather delays common in New Mexico are anticipated and will be addressed as per the Change Order clause below. Progress updates will be provided [Frequency, e.g., weekly] and project meetings will be held [Frequency, e.g., bi-weekly].

6. Payment

The total Contract price is [Total Price].

Unit Prices (if applicable): [List of Unit Prices].

Payment Schedule:

Option A: Milestone Payments: [Detailed Milestone Payment Schedule].

Option B: Percentage Payments: [Detailed Percentage Payment Schedule].

Retainage: [Retainage Percentage]% as permitted under New Mexico law.

Change Orders: The basis for change orders shall be [Basis for Change Orders] with markup limits as per local regulation.

Payment Application Procedures: [Detailed Procedures].

Permissible Deductions: [List of Permissible Deductions].

Lien Waivers: Contractor shall provide lien waivers with each payment application.

Prompt Pay: All payments are subject to New Mexico’s Prompt Pay Act.

7. Licenses, Registrations, and Bonding

The Contractor is duly licensed and registered with the New Mexico Construction Industries Division (CID) under license number [Contractor License Number].

The Contractor is [Is/Is Not] bonded. Bond details: [Bonding Information].

The Contractor shall maintain all necessary permits and inspections as required by the local jurisdiction.

8. Insurance

The Contractor shall maintain the following insurance coverages with New Mexico-compliant limits:

Contractor’s Liability: [Coverage Amount].

Workers’ Compensation: As required by New Mexico law.

Builder’s Risk: [Coverage Amount].

Auto Liability: [Coverage Amount].

The Client shall be named as an additional insured on the [Liability/Builder's Risk] policy. Proof of insurance shall be provided before mobilization.

9. Prevailing Wage (if applicable)

This project [Is/Is Not] subject to New Mexico’s Public Works Minimum Wage Act.

If applicable, prevailing wage requirements and certified payroll reporting shall be adhered to.

10. Change Orders

All change orders must be in writing and signed by both parties.

The change order shall clearly state the effect on the price and schedule.

11. Site Access and Utilities

The Client shall provide the Contractor with reasonable access to the project site.

The Client shall be responsible for providing [Specify Utilities, e.g., water and electricity].

The Contractor shall notify 811 New Mexico One Call for underground utilities prior to excavation.

12. Subcontractors

The Contractor may subcontract portions of the work.

All subcontractors shall be properly licensed and insured. The Contractor is responsible for the performance of all subcontracted work. Required disclosures under New Mexico law regarding subcontractors will be made.

13. Inspections

The Contractor shall schedule and coordinate all required inspections, including foundation, framing, MEP, and final inspections, in accordance with New Mexico CID regulations.

14. Completion and Acceptance

Construction shall be deemed complete upon final acceptance by the Client and sign-off from city or county officials.

A punch-list process shall be used to address any remaining items.

15. Warranty

The Contractor warrants that all workmanship shall be free from defects for a period of one (1) year from the date of final completion.

Manufacturer warranties for materials shall be passed through to the Client.

Warranty service call procedures: [Detailed Procedures].

16. Client's Payment Obligations and Lien Rights

The Client shall make payments according to the payment schedule outlined above.

Late payments shall accrue interest at the rate of [Interest Rate]% per annum, as allowed by New Mexico law.

The Contractor has the right to serve preliminary notices or file mechanics’ liens under New Mexico law to secure payment. Lien release procedures shall be followed upon final payment.

17. Indemnification

Each party agrees to indemnify and hold harmless the other party from and against any and all claims, damages, losses, and expenses arising out of or relating to its own negligence or willful misconduct.

This provision does not waive coverage for injuries under workers’ compensation statutes.

Limitations of Contractor Liability: [List of Limitations, if any].

18. Suspension and Termination

This Contract may be suspended or terminated under the following circumstances:

Option A: Termination for Cause: [Detailed Conditions].

Option B: Termination for Convenience: [Detailed Conditions].

Cure Period: [Number] days.

Upon termination, all outstanding balances shall be settled, stored materials shall be handled as agreed, and permits/warranties shall be transferred as appropriate.

19. Confidentiality

Both parties agree to hold confidential any proprietary information exchanged during the course of this Contract, including architectural designs and construction methods.

20. Dispute Resolution

Any disputes arising out of or relating to this Contract shall be resolved through negotiation, then mediation or arbitration (with a New Mexico venue).

This Contract shall be governed by and construed in accordance with the laws of the State of New Mexico.

21. Compliance with Laws

The Contractor shall comply with all applicable New Mexico state and federal employment, safety, nondiscrimination, and environmental laws, including the Occupational Health and Safety Act and New Mexico Environmental Improvement Board standards.

22. Local Practices

The Contractor shall adhere to all applicable local practices, including requirements for performance and payment bonds on public works, minority outreach reporting (if applicable), and tribal consultation (if the project is on or near tribal lands).

23. Force Majeure

Neither party shall be liable for delays or failure to perform due to causes beyond its reasonable control, including weather delays or other force majeure events as recognized under New Mexico law.

24. Document Retention

Both parties shall retain all documents related to this Contract as required under New Mexico law.

Rights of audit or inspection shall exist during and after construction as required under New Mexico law.

25. Cleanup

The Contractor shall be responsible for final cleanup, waste disposal, and recycling in compliance with state and local mandates.

26. Contract Modification

All modifications to this Contract must be in writing and signed by both parties to be enforceable under New Mexico’s Statute of Frauds.

27. Consumer Disclosures (Residential Projects)

Required consumer disclosures under New Mexico’s Unfair Practices Act for residential projects, such as notice of right to cancel and contractor’s obligation to timely comply with all CID inspections, are attached.

28. Severability

If any provision of this Contract is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect. Failure to enforce any provision shall not waive future enforcement rights.

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

____________________________
[Contractor Full Legal Name]

____________________________
[Client Full Legal Name]