At a Glance
Quick Answer
New Mexico has an active prevailing wage law (New Mexico Public Works Minimum Wage Act (NMSA 1978, Sections 13-4-10 to 13-4-17)). Administered by New Mexico Department of Workforce Solutions, Labor Relations Division. Certified payroll is required. Federal Davis-Bacon applies to all federal projects.
New Mexico's prevailing wage law applies to public works contracts exceeding $60,000 for construction, alteration, demolition, or repair. Contractors must register with the state before bidding on prevailing wage projects. Registration must be renewed annually.
Context
Prevailing Wage & Bidding in New Mexico
Contractors bidding public work in New Mexico answer to the Public Works Minimum Wage Act (NMSA 1978, Sections 13-4-10 to 13-4-17), administered by the Department of Workforce Solutions, Labor Relations Division. Coverage starts on public works contracts exceeding $60,000 for construction, alteration, demolition, or repair. Below that figure the state act does not apply, but at or above it your estimate must be built on the published prevailing rates, which the state derives from local surveys and collective bargaining agreements, not on your internal pay scales.
A distinctive New Mexico requirement affects your ability to bid at all: contractors must register with the state before bidding on prevailing wage projects, and that registration must be renewed annually. Let it lapse and you can be disqualified from bidding, so treat registration as a standing prerequisite, not a per-project task. Certified payroll is required, so price the administrative burden of weekly reporting and accurate trade classification into your overhead. The most expensive mistakes here are classifying mechanics as laborers and missing fringe obligations on the published schedule.
When federal dollars are in the mix, Davis-Bacon applies alongside the state act, and you must pay the higher applicable rate for each classification. Pull both the New Mexico determination and the federal wage decision during the estimate so labor is priced correctly before submission. Non-compliance carries back wages, civil penalties, and debarment from public contracts, and back-wage exposure cannot be recovered through change orders, so lock in the correct rates, fringes, and your active registration status before the bid goes in.
Details
Coverage Details
State Law Details
- Law
- New Mexico Public Works Minimum Wage Act (NMSA 1978, Sections 13-4-10 to 13-4-17)
- Agency
- New Mexico Department of Workforce Solutions, Labor Relations Division
- Thresholds
- Public works contracts exceeding $60,000
- Certified Payroll
- Required
Federal Davis-Bacon Coverage
The federal Davis-Bacon Act applies to all federally funded or federally assisted construction contracts over $2,000 in New Mexico. This includes projects funded by federal agencies, FHWA highway projects, HUD housing, and projects receiving federal grants.
Reference
Key Facts
Threshold is $60,000 for public works contracts
Contractors must register with the state before bidding
Annual registration renewal required to maintain eligibility
Wage rates based on local surveys and collective bargaining agreements
Covers construction, alteration, demolition, and repair of public works
Enforcement
Penalties
Contractors face payment of back wages, debarment from public contracts, and civil penalties. Failure to register may result in disqualification from bidding.
Resources
Related Tools & Templates
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FAQ
Questions Contractors Ask
Does New Mexico have a prevailing wage law?
Yes. New Mexico has an active state prevailing wage law: New Mexico Public Works Minimum Wage Act (NMSA 1978, Sections 13-4-10 to 13-4-17). New Mexico's prevailing wage law applies to public works contracts exceeding $60,000 for construction, alteration, demolition, or repair. Contractors must register with the state before bidding on prevailing wage projects. Registration must be renewed annually.
Does Davis-Bacon apply in New Mexico?
Yes. The federal Davis-Bacon Act applies to all federally funded construction projects over $2,000 in New Mexico, regardless of state law. Contractors must pay the prevailing wage rate determined by the DOL for the project location.
Is certified payroll required in New Mexico?
Yes. New Mexico requires certified payroll on state prevailing wage projects. Additionally, certified payroll is always required on federal Davis-Bacon projects using form WH-347.
What are the penalties for prevailing wage violations in New Mexico?
Contractors face payment of back wages, debarment from public contracts, and civil penalties. Failure to register may result in disqualification from bidding.
Do I need to register with New Mexico before bidding a prevailing wage project?
Yes. New Mexico requires contractors to register with the state before bidding on prevailing wage public works, and the registration must be renewed annually. Failing to maintain active registration can disqualify you from bidding entirely, so verify your status well before any bid deadline rather than at submission.
What is New Mexico's prevailing wage threshold for repair work?
The Public Works Minimum Wage Act covers construction, alteration, demolition, and repair on public works contracts exceeding $60,000. Repair work crossing that dollar figure must pay published prevailing rates. Projects at or below $60,000 are not subject to the state act, though federally funded work may still trigger Davis-Bacon.
How does New Mexico set its prevailing wage rates?
The Department of Workforce Solutions, Labor Relations Division bases rates on local wage surveys and collective bargaining agreements for each trade classification. Because rates reflect local conditions, estimators should pull the current determination for the project area and confirm both base wages and fringe amounts before pricing labor.