A New Mexico subcontractor agreement specifies the conditions under which a general contractor hires a subcontractor to help them complete all or part of a more extensive work assignment. Drafting this agreement ensures that both parties are aware of the particular service(s) to be provided, how much the subcontractor will be paid, how long the agreement will last, and whether the subcontractor is responsible for providing their own tools, supplies, machinery, and labor.

Another critical component of the agreement is the dispute resolution clause, which affords the parties the opportunity to avoid litigation by resolving the issue through a neutral mediator or arbitrator. The agreement should also specify whether either party is permitted to terminate the contract early during the course of operations.