What is the retainage cap in New Mexico?

On public work the planning cap is 0% on most jobs under $500k; 5% above. On private work it is 5%. Bid documents and the subcontract still control if they are stricter.

When is retainage released in New Mexico?

Public jobs typically release n/a if banned; 30 days if allowed. Private jobs: Per contract. Confirm the contract date — several states changed caps in 2025–2026.

How fast must a prime pay a sub in New Mexico?

7 days after the prime is paid. Owner or agency to prime is Public: 21 days after invoice. Late-pay interest: Per contract.

New Mexico · NM

New Mexico retainage law and prompt-payment rules

Most contractor-friendly public retainage regime in the country. Start in the code: N.M. Stat. § 57-28-5; Public Works Minimum Wage Act.

Use this page when you are bidding or billing a job in New Mexico. Public retainage is listed as 0% on most jobs under $500k; 5% above; private as 5%. Typical public release is n/a if banned; 30 days if allowed.

Then open the retainage calculator for the dollars, or the G702-style pay application if you need line-by-line previous certificates.

Where is the job?

State and project type drive retainage caps and payment clocks

State

Project type

Caps and clocks change with project type, contract value, and the year you signed. Planning table only — confirm the current statute before you rely on a date.

New Mexico — private work

Retainage cap5%

Typical retainage releasePer contract

Interest / penaltyPer contract

Owner / agency to primePublic: 21 days after invoice

Prime to sub (after prime paid)7 days after the prime is paid

Start in the codeN.M. Stat. § 57-28-5; Public Works Minimum Wage Act

Most contractor-friendly public retainage regime in the country.

Summaries compiled for planning. This site is not a law firm.

Run the retainage dollars

Questions this page answers

What is the retainage cap in New Mexico?: On public work the planning cap is 0% on most jobs under $500k; 5% above. On private work it is 5%. Bid documents and the subcontract still control if they are stricter.
When is retainage released in New Mexico?: Public jobs typically release n/a if banned; 30 days if allowed. Private jobs: Per contract. Confirm the contract date — several states changed caps in 2025–2026.
How fast must a prime pay a sub in New Mexico?: 7 days after the prime is paid. Owner or agency to prime is Public: 21 days after invoice. Late-pay interest: Per contract.

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