New Mexico Administrative Code
Title 14 - HOUSING AND CONSTRUCTION
Chapter 5 - CONSTRUCTION INDUSTRIES GENERAL PROVISIONS
Part 9 - CODE BOND DETERMINATIONS
Section 14.5.9.10 - CERTIFICATES OF UNCORRECTED VIOLATIONS
Current through Register Vol. 35, No. 18, September 24, 2024
A. Cause for issuance of a CUV: If a licensee refuses or fails to correct code violations listed on a CVD, whether the refusal or failure to correct occurs at the time of the initial issuance of the CVD, after multiple corrections have been attempted or after a licensee exhausts all appeal rights provided under Subsection B of 14.5.9.9 NMAC, the division shall issue a CUV to the surety as well as the indemnitee and the appropriate licensee(s).
B. Notice of CUV: The CUV shall include the following information:
therefore the construction industries division, under Section 60-13-49 NMSA 1978, is informing the surety that the code bond must be released for the sole purpose of correcting the code violation(s) identified herein. The pay-out by the surety company is limited to the amount of the code bond, which is set by statute at $10,000.00. If the actual costs to correct the code violation(s) exceeds $10,000.00, the indemnitee is responsible for those costs. The requirements of the surety and indemnitee are listed under 14.5.9 NMAC. The indemnitee is also notified that the claim may be denied if they fail to meet the requirements listed in 14.5.9.10 NMAC."
C. Responsibility of indemnitee: The indemnitee is responsible for meeting the following requirements; failure to do so may result in the surety denying the claim.
D. Responsibility of contractor retained by indemnitee: The contractor is responsible for pulling all necessary permits and calling for inspections on the work performed.
E. Six-month time limitation to correct code violations: Once the CUV is issued, the indemnitee has a period of six months to ensure that all code violations identified in the CUV are corrected and pass inspection by the division or AHJ. Failure to meet the requirements listed in Subsection C of 14.5.9.10 NMAC in a period of six months may result in the surety denying the claim.
F. Release of the code bond: If all requirements of this section are met, the surety company shall release the amount of the bond consistent with Paragraph (1) of Subsection C of 14.5.9.10 NMAC to correct the code violations as listed in the CUV by issuing a check to the contractor that performed the corrections after the division or AHJ has confirmed that the corrections meet code. The surety company shall inform the division when the code bond is released.