New Mexico Subcontractor Agreement Template | Statutory Compliant
Generate a construction subcontract tailored to New Mexico law — with statutory prompt payment deadlines, retainage caps, lien waiver rules, and anti-indemnification protections built in.
Contract Parties
Subcontractor
Project & Schedule
Payment Terms
Total subcontract price for your scope of work.
New Mexico rules: New Mexico does not cap retainage by statute on private construction; retainage is negotiable.
Days after GC receives owner payment.
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Download a clean, print-ready PDF with all New Mexico statutory clauses included — prompt payment, retainage, lien waiver, and indemnification.
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Subcontractor Agreement
Construction Subcontract — State of New Mexico
This Subcontractor Agreement (the “Agreement”) is made and entered into as of October 5, 2026 by and between [General Contractor Name] (“General Contractor”) and [Subcontractor Name] (“Subcontractor”), governed by New Mexico Statutes Chapter 48, Article 2 and the laws of the State of New Mexico.
General Contractor
[General Contractor Name]
Subcontractor
[Subcontractor Name]
Project Owner
—
Project Address
—
Contract Price
[Contract Price]
License #
—
1. Scope of Work
Subcontractor shall furnish all labor, tools, equipment, and materials necessary to complete the agreed scope of work in a good and workmanlike manner, in compliance with all applicable building codes.
2. Payment
GC shall pay Subcontractor within 10 days after receiving payment from the Project Owner. Under NMSA 48-2-8.2 (private), the general contractor must pay subcontractors within 10 days after receiving payment from the owner, and if the owner doesn’t pay within 30 days of the invoice, 1.5% monthly interest and attorney fees are available.
3. Retainage
GC may withhold 10% retainage from each progress payment. New Mexico does not cap retainage by statute on private construction; retainage is negotiable. On public works under NMSA 13-4-23, retainage is commonly 5% with prompt release requirements.
4. Lien Waivers
New Mexico does not require statutory lien waiver forms; waivers are enforceable if they clearly identify the project, amount, and date. Conditional waivers are best practice until payment clears to preserve lien rights under Chapter 48-2.
5. Mechanics Lien Rights Preserved
New Mexico requires filing a lien within 90 days after the last work or materials were furnished, followed by foreclosure within 2 years of filing. New Mexico does not require a statutory preliminary notice for private projects; best practice is a voluntary Notice of Intent to lien.
6. Indemnification
New Mexico under NMSA 48-2-16(B) voids provisions in construction contracts requiring a subcontractor to indemnify another party for that party’s sole negligence or willful misconduct.
7. Governing Law
This Agreement is governed by the laws of the State of New Mexico, including New Mexico Statutes Chapter 48, Article 2 (New Mexico Lien Law) and Prompt Pay at NMSA § 48-2-10 (public) and within Chapter 48-2 (private).
[General Contractor Name] — General Contractor
Print Name / Title
[Subcontractor Name] — Subcontractor
Print Name / Title
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New Mexico Payment & Retainage Rules
Under NMSA 48-2-8.2 (private), the general contractor must pay subcontractors within 10 days after receiving payment from the owner, and if the owner doesn’t pay within 30 days of the invoice, 1.5% monthly interest and attorney fees are available.
Retainage Cap
New Mexico does not cap retainage by statute on private construction; retainage is negotiable. On public works under NMSA 13-4-23, retainage is commonly 5% with prompt release requirements.
Pay-When-Paid
Your agreement states that owner payment is a timing mechanism, not an absolute condition precedent — preserving your right to payment and statutory remedies under New Mexico Statutes Chapter 48, Article 2.
Lien Waivers
New Mexico does not require statutory lien waiver forms; waivers are enforceable if they clearly identify the project, amount, and date. Conditional waivers are best practice until payment clears to preserve lien rights under Chapter 48-2.
Your Mechanics Lien Rights in New Mexico
This agreement expressly preserves your right to record a mechanics lien and serve statutory preliminary notices — no pay-if-paid, pay-when-paid, or lien waiver clause in the document can waive your lien rights beyond payment actually received.
New Mexico requires filing a lien within 90 days after the last work or materials were furnished, followed by foreclosure within 2 years of filing.
New Mexico does not require a statutory preliminary notice for private projects; best practice is a voluntary Notice of Intent to lien.
Deadlines matter: missing a New Mexico lien or notice deadline can permanently waive your security interest in the project. Calendar both dates the day you mobilize on site.
Indemnification Limits Under New Mexico Law
New Mexico under NMSA 48-2-16(B) voids provisions in construction contracts requiring a subcontractor to indemnify another party for that party’s sole negligence or willful misconduct.
New Mexico Subcontractor Agreement FAQs
When must a general contractor pay me under New Mexico prompt payment law?
Under NMSA 48-2-8.2 (private), the general contractor must pay subcontractors within 10 days after receiving payment from the owner, and if the owner doesn’t pay within 30 days of the invoice, 1.5% monthly interest and attorney fees are available. Your subcontract should mirror these statutory deadlines so that late payments automatically trigger the statutory interest and remedies without negotiation.
How much retainage can a GC legally withhold in New Mexico?
New Mexico does not cap retainage by statute on private construction; retainage is negotiable. On public works under NMSA 13-4-23, retainage is commonly 5% with prompt release requirements. Your agreement should specify the exact retainage percentage, the release schedule (typically at substantial completion and final completion), and payment of statutory interest on withheld retainage.
Are pay-if-paid clauses enforceable in New Mexico subcontracts?
While New Mexico has not enacted a blanket statutory ban on pay-if-paid clauses, courts and statutes in most states treat "pay-when-paid" as a reasonable timing provision rather than an absolute condition. Check New Mexico Statutes Chapter 48, Article 2 (New Mexico Lien Law) and Prompt Pay at NMSA § 48-2-10 (public) and within Chapter 48-2 (private) for specific restrictions, and make sure your subcontract states that payment from the owner is not an absolute condition precedent to your right to be paid.
What lien waiver rules apply in New Mexico?
New Mexico does not require statutory lien waiver forms; waivers are enforceable if they clearly identify the project, amount, and date. Conditional waivers are best practice until payment clears to preserve lien rights under Chapter 48-2. Never sign an unconditional waiver until payment has actually cleared your bank account, and make sure your waiver identifies the specific billing period and amounts to avoid losing lien rights on future work.
Can a New Mexico subcontract require me to indemnify the GC for the GC’s own negligence?
New Mexico under NMSA 48-2-16(B) voids provisions in construction contracts requiring a subcontractor to indemnify another party for that party’s sole negligence or willful misconduct. Always read the indemnification clause carefully — even in states with anti-indemnity statutes, "broad form" indemnity for joint negligence is typically still enforceable.
How do I preserve my mechanics lien rights in New Mexico?
New Mexico requires filing a lien within 90 days after the last work or materials were furnished, followed by foreclosure within 2 years of filing. New Mexico does not require a statutory preliminary notice for private projects; best practice is a voluntary Notice of Intent to lien. Send statutory notices by certified mail or another trackable method, keep copies of everything, and calendar the deadlines immediately upon each project’s completion.