You can now apply online for a New Mexico Performance Bond - it only takes three (3) minutes! (Yep, we timed it.) Click here:
Or you Can download our Express Performance Bond Application (click to download form)
- Complete the form and email to [email protected]
- Be sure to include the Contract and Notice of Award letter (bid specs from the obligee).
- Send the bid results if you have them
What is a Performance Bond in New Mexico?
How do I get a Performance and Payment Bond in New Mexico?
We make it easy to get a contract performance bond. Just click here to get our New Mexico Performance Application. Fill it out and then email it and the New Mexico contract documents to [email protected] or fax to 855-433-4192.
You can also call us at (913) 562-6992. We thoroughly review each and every application for commercial bonds and then submit it to the surety that we believe will provide the best p & p bond for your matter. The surety broker will perform a credit check. We have a high success rate in getting our clients performance and payment bonds at the best rates possible.
Ensure peace of mind for your construction project with our construction completion bond – safeguarding your investment from start to finish.
Performance bonds for construction in New Mexico?
The cost of a performance bond can vary widely depending on the amount of coverage that is required. It is based on the total amount of the contract. Things that can affect this pricing are the perceived risk of the job, the financial position of the entity being bonded, plus other factors.
How much do bonds cost in NM?
Bond prices fluctuate based on the job size. The cost of a bond is estimated through a couple of back-of-the-envelope calculations. In general, the cost is approximately three percent (3%) for jobs under $800,000 and then the percentage is lower as the contract amount increases. We work diligently to find the lowest premiums possible in the state of New Mexico. Please call us today at (913) 562-6992. We'll find you the very best rate possible for your maintenance bond or completion bond.
| Bond Amount Needed | Fee |
| <$800,000 | 2-3% |
| >$800,000<$1,500,00 | 1.5-3% |
| >$1.500,000 | 1-3% |
These rates are for Merit clients, Standard rates are higher
Just fill out our bond application here and email it to [email protected]
Find a Performance Bond near Me
What is a Payment Bond? Is it included with the Performance Bond? A payment bond is a bond that assures that the subcontractors and material vendors are paid. The payment provides that if the subcontractors are not paid timely and they make a valid claim, then the surety will pay them (and then collect and try from the general contractor).
What is a payment and performance bond? What is a contract bond?
Typically, a payment and performance bond are done together in the same contract by the surety. This way, the owner of the project is assured that the project can be completed pursuant to the terms of the contract and that it will not be liened by any contractor. The bond is performance security for the benefit of the owner.
Who Gets the Bond?
The general contractor is the entity that gets the bond. It is for the benefit of the owner (or in the case of government contract work, the governmental entity). It's the general contractor that has to apply for the bond and be underwritten before the performance and payment bond is written by the surety. This is also known as bonding a business.
How to Get a Performance Bond in NM
Just call us. We’ll work with you to get the best New Mexico bonding possible.
We provide performance and payment bonds in each of the following counties:
Bernalillo
Catron
Chaves
Cibola
Colfax
Curry
De Baca
Dona Ana
Eddy
Grant
Guadalupe
Harding
Hidalgo
Lea
Lincoln
Los Alamos
Luna
McKinley
Mora
Otero
Quay
Rio Arriba
Roosevelt
Sandoval
San Juan
San Miguel
Santa Fe
Sierra
Socorro
Taos
Torrance
Union
Valencia
And Cities:
Albuquerque
Santa Fe
Las Cruces
Roswell
Farmington
Carlsbad
Taos
Hobbs
Gallup
Ruidoso
See our New York Performance Bond page here.
Demystifying Performance Bonds in New Mexico: Key Insights You Need to Know
Performance bonds are crucial in ensuring that projects in New Mexico are completed according to the agreed terms. From our perspective, understanding the nuances of performance bonds can significantly enhance your approach to managing construction projects. Below, we explore some critical aspects of performance bonds, providing you with a comprehensive understanding tailored to the New Mexico market.
The Distinctive Edge: Performance Bonds vs. Bank Letters of Credit in New Mexico Construction
We’ve consistently found that confusion often arises when comparing performance bonds to bank letters of credit. While both financial instruments provide security, their functions differ significantly. Performance bonds guarantee that a contractor will complete a project per the contractual agreement, ensuring that the project’s obligations are met. On the other hand, bank letters of credit are more focused on ensuring payment rather than project completion. In our observation, understanding this difference is vital for anyone involved in New Mexico’s construction industry, where clarity on financial instruments can impact project outcomes.
Exploring Refundability: Can You Get Your Money Back?
Based on our experience, one common question is whether performance bonds are refundable. The answer is generally no. Once the bond is issued, the premium paid is considered earned, meaning that refunds are not typically available, even if the bond isn’t utilized. We’ve found that this is because the risk assumed by the surety company in guaranteeing the contractor’s performance is immediate and ongoing, making the premium non-refundable as soon as the bond is active.
The Claim Process: What Happens When Things Take a Turn?
We’ve learned that the claim process on a performance bond is critical to understanding its value. When a contractor fails to meet their contractual obligations, a claim can be filed against the bond. The surety company will investigate, and if the claim is valid, they will either pay the obligee or arrange for the project to be completed by another contractor. Our experience tells us that this process, while protective for the obligee, can be financially devastating for the contractor, who is ultimately responsible for repaying the surety.
Timing the Release: When Is Your Bond No Longer Needed?
In our view, knowing when a performance bond is released is crucial for contractors and project owners alike. Typically, the bond is released once the project is completed and all contractual obligations, including any warranties or maintenance, are fulfilled. We’ve observed that delays in releasing the bond often stem from unresolved disputes or outstanding work, making it essential to ensure all terms are met before expecting the bond to be released.
Comprehensive Coverage: Why a 100% Bond is Crucial for New Mexico Projects
We’ve had firsthand experience with 100 percent performance and payment bonds, which offer comprehensive protection by covering the full value of the contract. These bonds not only guarantee project completion but also ensure that subcontractors, suppliers, and laborers are paid. We’ve come to notice that these bonds are particularly popular in New Mexico for large public projects where complete financial security is paramount.
The Bond Issuance Timeline: How Long Should You Wait?
We’ve been in the position where the timing of securing a performance bond is critical. The process can range from a few days to several weeks, depending on the contractor’s financial health and the project’s complexity. We’ve often found ourselves advising contractors to maintain strong financial records and a good relationship with surety companies to expedite the process, especially in New Mexico’s competitive construction market.
Expiration Concerns: What Happens When the Clock Runs Out?
We’ve come to appreciate the importance of monitoring the expiration of performance bonds. If a bond expires before the project is completed and is not renewed, the obligee loses the security it provides, which can lead to significant risks. We’ve encountered situations where contractors must act quickly to renew or replace the bond to maintain continuous protection, ensuring the project’s financial stability remains intact.
In summary, performance bonds are an integral part of the construction landscape in New Mexico. We’ve realized that understanding the various aspects of these bonds—from their issuance and expiration to how they compare with other financial instruments—can make a substantial difference in how effectively a project is managed. With this knowledge, stakeholders in New Mexico’s construction industry can better navigate the complexities of performance bonds, ensuring successful project outcomes.
See more at our Oregon Performance Bond page.
