In 2008, the New Mexico legislature passed a law requiring contractors to carry a $10,000 Consumer Protection Code Bond to satisfy the financial responsibility requirement for licensure.  As of July 1st, 2009, all new licensees and all renewals of licenses issued by the Construction Industries Division (CID) must provide the new bond on a form approved by the CID to replace the previous New Mexico contractor license bond.  This marks the beginning of the changeover from the current Contractor’s License Bond to the new Contractor’s License Code Bond.  The current bond pays the state for fines levied against contractors and the new code-compliance bond repays a consumer for costs to correct code violations that the original contractor either refused to correct or was unable to correct.

Highlights of the new bond as per CID:

  • Claims may be filed by your customers if they feel you have committed a building code violation.
  • Construction Industries Division (CID) will determine if a violation of a building code has occurred.
  • According to CID, contractors will be given a “reasonable opportunity” to correct a code violation before the bond pays out.
  • The surety company may pay no more than $10,000 per project, directly to the building owner.
  • Claims must be made within two years following final inspection or issuance of a Certificate of Occupancy (whichever is earlier) for the project.
  • Claims may be only for actual cost to repair the code violation (no legal fees).

Surety One, Inc., New Mexico surety leader is a preferred provider of the New Mexico Contractors License Code Bond. We offer these to experienced applicants regardless of credit condition and where a previous claim may have been made. For applications and information visit us at, call (787) 333-0222 or (800) 373-2804, or email for the New Mexico consumer protection bond application or further information.