Home improvement contractors are generally companies that manage and construct improvements to existing residences—whether kitchens, bathrooms, bedrooms, or complete remodels.

A contract for home improvement includes a description of the scope of the work to be performed; the materials to be used; the general contractor’s obligations to hire and manage subcontractors to construct the various components of the building; the payment terms for the construction of the building and the management of the construction; the time for completion of the work; insurance requirements; and the filing and removal of mechanic’s and materialmen’s liens (also known as construction liens or contractor liens) for labor and materials provided to improve the real estate.

In New Mexico, home improvement contractors are regulated to ensure consumer protection and fair business practices. Contractors must comply with state statutes and regulations, which may include obtaining a license from the New Mexico Regulation and Licensing Department, Construction Industries Division. The licensing process ensures that contractors meet certain qualifications and adhere to building codes and standards. Contracts for home improvement must be clear and detailed, including the scope of work, materials, subcontractor management, payment terms, completion time, insurance requirements, and provisions for mechanic's and materialmen's liens. These liens are a legal claim against a property for unpaid work or materials and are governed by New Mexico statutes, specifically the Mechanic's and Materialman's Lien Act (NMSA 1978, Sections 48-2-1 to 48-2-17). It is important for both contractors and homeowners to understand their rights and obligations under the law to ensure a fair and successful home improvement project.