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Whay Types of Contract Surety Bonds May be Required in New Mexico?

A New Mexico Contractor shakes hands with a client

Contracts are generally done through a solicitation procedure where companies and individuals can bid on services, goods or construction projects. The process could include completion of a bid bond form, application to a vendor system, and other requirements. Below are links that provide more details to contract processes.

Contract Surety Bonds are often required by the federal government, local municipalities, counties, universities or private entities. The process generally begins with a bidding process, and if a contractor is awarded the contract, a contract bond or payment and/or performance bond (such as for an AIA or NMDOt contract) may be required. There are several categories that fall under the umbrella of contract bonds which include:

Supply Bond: Guarantees that the company will supply the goods in the time frame as specified in the contract.

Maintenance Bond: Guarantees materials workmanship for a certain period of time after a project is completed.

Bid Bond: Ensures that the surety prequalifies the contractor bidding on the project. The bond confirms that if the contractor is the low bidder, the surety will issue the performance and payment bonds.

Performance Bond: Guarantees the contractor will perform the contract, including finishing the project on time, staying within budget and other terms within the contract.

Bid Bond: Ensures that the surety pre-qualifies the contractor bidding on a project. The bond confirms that if the contractor is the low bidder, the surety will issue the performance and payment bonds.

Proposal Guarantee Bond: Another term for Bid Bond and includes the same aspects.

Payment Bond: Guarantees that subcontractors, suppliers and laborers receive payment.

Maintenance Bond: Guarantees materials workmanship for a certain period of time after a project is completed.

Did You Know?

The Small Business Administration has a Bond Guarantee Program to help small contractors bid on projects.

Related Links:

Small Business Association Bond Guarantee Program
New Mexico State Purchasing Division
New Mexico Department of Transportation - Procurement Services Bureau

How Much Will This Bond Cost?

The premium that you pay for a New Mexico contract bond vary and are dependent on business and personal financials, scope of work, the amount of the project, work on hand, experience and other conditions.

How Do I Get a Surety Bond?

Contact our Surety Bond Specialists today at:

Phone: 1‑844‑432‑6637
Emailinfo@suretygroup.com
Fax:     404-351-3237
Hours: 8:00-5:00 CST, Monday through Friday



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