Late Fees on Invoices in New Mexico
What New Mexico contractors and small businesses need to know about charging late fees, interest rates, prompt payment laws, and mechanics lien deadlines.
Max Interest Rate
15% per annum (maximum by agreement); 1.5% per month on construction
Small Claims Limit
$10,000
Metropolitan Court or Magistrate Court
Mechanics Lien Deadline
120 days from the last day of furnishing for GCs; 90 days for subs
New Mexico Prompt Payment Act
New Mexico Prompt Payment Act, NMSA § 57-28-1 et seq.
New Mexico requires payment within 21 days for state contracts. The Prompt Payment Act also applies to private construction, requiring payment within 21 days of invoice.
Late fee rules for New Mexico invoices
New Mexico's Prompt Payment Act is unusually strong — it applies to both public and private construction and provides 1.5% monthly interest plus attorney fees.
New Mexico's Prompt Payment Act provides 1.5% per month (18% per annum) on late construction payments. General contracts are subject to a 15% per annum usury limit.
Important disclaimer
This page provides general information about New Mexico late fee rules. It is not legal advice. Laws change, and your specific situation may have unique factors. For disputes involving significant amounts, consult a licensed attorney in New Mexico.
Demand letters and mechanics liens in New Mexico
New Mexico does not require a formal demand letter, but written notice of the lien claim must be served on the property owner.
Mechanics lien deadline: 120 days from the last day of furnishing for GCs; 90 days for subs. A claim of lien must be filed with the county clerk.
Sample late fee clause for New Mexico invoices
“Payment is due within the terms specified above. A late fee of 1.5% per month (15% per annum (maximum by agreement); 1.5% per month on construction maximum per New Mexico law) will be applied to all balances remaining unpaid after the due date. Pursuant to the New Mexico Prompt Payment Act (NMSA § 57-28-1 et seq.), the undersigned reserves all rights to pursue collection including but not limited to mechanics lien filing, small claims action (up to $10,000 in Metropolitan Court or Magistrate Court), and referral to collections.”
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Start Free TrialFrequently asked questions — New Mexico
What is the maximum late fee I can charge on an invoice in New Mexico?▾
In New Mexico, New Mexico's Prompt Payment Act provides 1.5% per month (18% per annum) on late construction payments. General contracts are subject to a 15% per annum usury limit. Always disclose late fee terms in your contract or invoice before work begins.
Does New Mexico have a prompt payment act?▾
Yes. New Mexico requires payment within 21 days for state contracts. The Prompt Payment Act also applies to private construction, requiring payment within 21 days of invoice.
What is the small claims court limit in New Mexico?▾
The small claims court limit in New Mexico is $10,000. Claims are filed in Metropolitan Court or Magistrate Court. You generally do not need an attorney for small claims.
How long do I have to file a mechanics lien in New Mexico?▾
In New Mexico, 120 days from the last day of furnishing for GCs; 90 days for subs. A claim of lien must be filed with the county clerk.
Do I need to send a demand letter before filing a lien in New Mexico?▾
New Mexico does not require a formal demand letter, but written notice of the lien claim must be served on the property owner.