Section 13-4-37 - Bond requirements. - New Mexico Statutes

13-4-37. Bond requirements.

A.     It is the responsibility of each subcontractor submitting a bid to a contractor to be prepared to submit a faithful performance and payment bond if so requested by the contractor.   

B.     In the event any subcontractor submitting a bid to a contractor does not, upon the request of the contractor and at the expense of the contractor at the established charge or premium therefor, furnish to the contractor a bond issued by a corporate surety authorized to do business in New Mexico in accordance with the New Mexico Insurance Code [59A-1-1 NMSA 1978] and listed in the United States treasury department circular 570 wherein the contractor is named the obligee, guaranteeing prompt and faithful performance of the subcontract and the payment of all claims for labor and materials furnished or used in and about the work to be done and performed under the subcontract, the contractor may reject the bid and make a substitution of another subcontractor subject to the provisions of Section 13-4-36 NMSA 1978.  Such bond may be required at the expense of the subcontractor only if the contractor in his written or published request for subcontract bids:   

(1)     specifies that the expense for the bond shall be borne by the subcontractor; and   

(2)     clearly specifies the amount and requirements of the bond.