Whether you’re a general contractor (GC), subcontractor, or property owner, understanding New Mexico lien waivers is crucial. These essential documents function as receipts acknowledging payment up to a specific amount, thereby waiving the party’s right to file a lien against the property for that amount. While the concept is straightforward, the practical application of lien waivers can be complex.
Several types of lien waivers exist, each requiring submission at specific times during a project. (For a deeper dive into lien waiver basics, refer to The Ultimate Guide to Construction Lien Waivers for Subcontractors.) Moreover, lien waiver requirements vary by state, with each jurisdiction setting its own rules regarding valid forms, contents, and enforcement.
Understanding these nuanced requirements is important for subcontractors to maintain compliance, prevent payment disputes, and protect their financial interests. So grab your hard hat, and let’s dive into the world of New Mexico lien waivers!
(For more general information on lien waivers, check out this on-demand webinar: End the Whack-a-Mole: Lien Waiver Best Practice for Subs.)
New Mexico is part of a club of 38 states that doesn’t regulate its lien waivers. This state takes it a step further than many we’ve reviewed, in that it has no lien waiver statutes to govern fair use:
- Advance lien waivers, or forms that ask you to give up your lien rights before work begins, are allowed here.
- It’s legal for parties to waive lien rights in the contract or before payment.
To add to this picture, New Mexico state law has historically declared any lien waiver as enforceable—even in situations when construction teams haven’t been paid. It’s essential for GCs, subs, and suppliers to review every piece of the lien waiver and corresponding job contract to safeguard their lien rights.
There are some benefits for subs working in New Mexico; the state supports a “prompt payment” clause that notes GCs must pay subs and suppliers within seven days of getting paid by the owner. If the GC misses this mark, they’ll owe payments with interest.
New Mexico doesn’t provide a specific or statutory lien waiver form.
Both conditional and unconditional lien waivers are accepted in New Mexico.
Both conditional and unconditional lien waivers are accepted in New Mexico.
To be considered valid in New Mexico, a lien waiver must:
- be in writing
- be signed by the waiving party
- clearly state the amount being waived and the property to which it applies
Parties can waive lien rights in the contract in New Mexico.
New Mexico doesn’t include any statutory provision that prohibits waiving lien rights before payment.
Completing Lien Waivers in Siteline
- Create, monitor, and track all your lien waivers in one place.
- Automatically fill out and send the right waiver at the right time.
- Request lower-tier lien waivers from all your sub-tier contractors, vendors, and suppliers—individually or in bulk.
- Securely collect e-signatures, with automatic reminders for any unsigned waivers.
- Package and submit signed waivers to your GCs directly within Siteline.
New Mexico doesn’t require a specific or statutory form for lien waivers. Parties can include any content they’d like—making it critical for GCs, subs, and suppliers to review the lien waiver and contract to retain their lien rights.
There are no specific statutory requirements governing the validity of a lien waiver in New Mexico. Therefore, it’s important to make sure the lien waiver is valid:
- It should clearly state the amount being waived and the property to which it applies, and
- It must be signed by the party waiving their lien rights.
Since no laws govern them, New Mexico lien waivers can be exchanged at any time. Advance lien waivers are allowed in the state, meaning lien rights can be waived before work begins. (We recommend negotiating against waiving lien rights in the contract, before payment, or before work starts to protect yourself.)
Lien waivers in New Mexico can either be conditional, exchanged with payment applications, or unconditional, binding as soon as they’re signed. If you’re exchanging an unconditional lien waiver in the state, do so only after you’ve been paid to retain leverage for payment.
Review this comprehensive guide to determine which lien waiver(s) to send and when for your construction project.
Subs, listen up: Provisions that ask you to waive your lien rights in the contract or before payment are completely legal in New Mexico. Look over everything with a careful eye to make sure you’re not signing away your right to file a lien and get paid fairly.
New Mexico lien waivers are completely unregulated, making disputes between owners and construction teams complicated. To make things even murkier, New Mexico courts have upheld decisions to enforce lien waivers, even when parties have made claims of missing payments.
New Mexico will often support owners over GCs, suppliers, or subs. If there’s a dispute over a New Mexico lien waiver, start by reviewing the lien waiver and job contract. Consider consulting with a construction law attorney familiar with New Mexico lien laws if it can’t be resolved directly.
Brush up on need-to-know lien waiver information before taking on a construction job in New Mexico:
- 2023 New Mexico Statutes, Chapter 48, Article 2, Section 48-2-2 (covers mechanic’s liens)
- 2023 New Mexico Statutes, Chapter 57, Article 28, Section 57-28-5 – Payments; prompt pay required; withholding prohibited
- New Mexico Regulation and Licensing Department
- State Bar of New Mexico Employment & Labor Law Section
Automate the process with Siteline. Contractors use our lien waiver tool to digitize all of their lien waiver forms (primary and vendor), send waiver requests to lower-tier contractors and vendors, collect e-signatures, and submit completed waivers to their clients—without ever leaving the system. Siteline even provides centralized tracking to help contractors monitor vendor waiver statuses to see who’s received the form, who’s opened it, and who has (or hasn’t) signed. This means contractors can collect waivers faster while eliminating payment delays caused by compliance holds.
Disclaimer: The information provided on this page is for general informational purposes only and does not constitute legal advice. We recommend you consult a qualified attorney for advice specific to your situation.