New Mexico retainage
Retainage in New Mexico — Sources checked
Who and what this applies to
Prompt Payment Act covered construction, excluding NMDOT and residential property with four or fewer dwellings.
Thresholds and scope
Retention of amounts owed for performed work is prohibited.
The rules
- When paying, owners, contractors and subcontractors cannot retain or hold back amounts owed for work performed. Source
- The Act excludes NMDOT from its owner definition and excludes contracts for residential property containing four or fewer dwelling units. Source
Primary sources
Sources reviewed 2026-09-30. This guide covers the projects and rules stated above.
Not legal advice. This is general legal information. Laws and project facts differ; confirm the applicable requirements for your project.
Back to New Mexico contractor law · Retainage topic guide.
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