New Mexico Contractor Bonds
New Mexico Contractor Bonds:
Bond Limits and Regulations
Contractor’s license bonds are established in the following amounts as based upon the volume of work within the State of Arizona and the classification contemplated by the licensee:
| LICENSE TYPE | CONTEMPLATED GROSS VOLUME (PER LICENSE) | BOND AMOUNT |
|---|---|---|
| Residential General Contractors | Less than $750,000 | $9,000 |
| $750,000 or more | $15,000 | |
| Residential Specialty Contractors | Less than $375,000 | $4,250 |
| $375,000 or more | $7,500 | |
| Commercial General Contractors (Includes General Engineering Contractors) | $150,000 or less | $5,000 |
| In excess of $150,000 but not more than $500,000 | $15,000 | |
| In excess of $500,000 but not more than one million | $25,000 | |
| In excess of one million but not more than five million | $50,000 | |
| In excess of five million but not more than ten million | $75,000 | |
| Over ten million | $100,000 | |
| Commercial Specialty Contractors | $150,000 or less | $2,500 |
| In excess of $150,000 but not more than $500,000 | $7,000 | |
| In excess of $500,000 but not more than one million | $17,500 | |
| In excess of one million but not more than five million | $25,000 | |
| In excess of five million but not more than ten million | $37,500 | |
| Over ten million | $50,000 |
Understanding Contractor’s Bonds in New Mexico:
If you’re thinking about getting your contractor’s license or are just curious about the bonding process, you’ve come to the right place. Let’s break down what you need to know about contractor’s bonds in the Grand Canyon State. It’s easier than you think!
Do You Need a Bond to Get a Contractor’s License in New Mexico?
Absolutely! When applying for a contractor’s license in Arizona, you’re responsible for securing a Contractor’s Bond. This bond can be a surety bond or a cash bond, depending on what works best for you. And if you’re a residential contractor, remember that you’ll also need to contribute to the Registrar’s Residential Recovery Fund or post an additional surety or cash bond of $200,000.
How Do You Get This Bond?
Good news: Arizona makes it pretty straightforward. As per A.R.S. § 32-1152(D), your surety bond needs to be from a company that’s authorized to do business in Arizona. The cool part? If your surety company is linked with the Registrar of Contractors’ Online Customer Service Portal, they can upload your bond directly to your application – talk about convenience and reducing errors!
But what if your surety company isn’t on the portal? No worries! You can manually upload your bond during the application process. There’s even a handy dropdown list of bond companies in the online application to guide you.
How Long Does a Bond Last?
Here’s the deal: the bond is continuous. This means there’s no end date – it keeps going until either you or the bonding company decide to end it. Just remember, if the bonding company wants to cancel, they have to give you and the Arizona Registrar of Contractors a 30-day heads-up. And yes, you’ll need to pay premiums periodically to keep it active.
What About the Bond Amount?
The bond amount depends on the volume of work you’re planning and your license classification. There’s a chart provided in the license application packet to help you figure this out. And if your business grows and you need a higher bond amount? You can increase it anytime.
When Does the Bond Kick In?
Your bond isn’t effective until it’s filed with the Registrar’s office. If the bond’s effective date is later than the filing date, then that later date is what counts.
Getting bonded as a contractor in Arizona might seem like just another step in the process, but it’s a crucial one for protecting yourself and your clients. Whether you opt for a surety bond or go the cash bond route, understanding these basics ensures you start your contracting journey on the right foot. Remember, it’s all about building trust and credibility in this industry, and your bond is a big part of that.
