New Mexico contractor license requirements

Licenses and registrations

GB-2 Residential

Contractors who erect, alter, repair or demolish residences and apartment houses of not more than four family units (Groups R-1, R-2 and R-3).

• When it applies: Any contracting work; the only exemption is casual, minor or inconsequential work such as handyman repairs that does not exceed $7,200 compensation a year.
• Good to know: Includes all work described by the GS specialty classifications when limited to residential construction. Qualifying party needs two years of foreman-level practical or related trade experience.

GB-98 General Building

Contractors who erect, alter, repair or demolish residential and commercial buildings and certain structures.

• When it applies: Any contracting work; same $7,200 handyman exemption applies.
• Good to know: Includes all work authorized by GB-2, GF-5, GF-7 and GS classifications. Qualifying party needs four years of foreman-level experience, two of them commercial.

GS specialty classifications

Specialty trade contractors (for example roofing, flooring, painting and similar trades) working under a specific GS classification.

• Good to know: Exact list of GS classifications was not reviewed for this guide.

Handyman exemption (annual declaration)

An individual doing casual, minor or inconsequential work such as handyman repairs, one project at a time.

• When it applies: Does not exceed seven thousand two hundred dollars ($7,200) compensation a year, in the aggregate or singly.
• Good to know: Does not cover electrical wiring, plumbing or gas fitting. The individual must file an annual declaration with the division.

What you need to qualify

• Exams: The qualifying party must pass the trade classification exam and a Contractor's Business & Law exam (an approved Business & Law course can substitute). Exams are given by PSI and require a minimum score of 75%. A passing score is valid for one year.
• Experience: GB-2: two years of foreman-level practical or related trade experience. GB-98: four years of foreman-level experience, at least two of them commercial. Experience must be within the 10 years before application and is documented with notarized work experience affidavits.
• Insurance: Workers' compensation coverage is required for all licensed entities.
• Bond: A bond in the amount of $10,000 at initial licensure and as a condition of renewal (14.6.3.8 NMAC).
• Business registration: Company application must include a tax registration certificate from the Taxation and Revenue Department, plus a Public Regulation Commission certificate (corporations and LLCs) or Secretary of State certificate (LLPs and LPs), as listed by CID.
• Also required: The business must employ or be owned by at least one certified qualifying party (QP).

Fees, renewal and continuing education

• Fees: Non-refundable license application fee of $30.00. License and renewal fee for GA-98, GB-2, GB-98, GF-98, EE-98 and MM-98: $100.00 per year or $200.00 for two years, for each classification. All other classifications: $50.00 per year or $100.00 for two years. CID's application page lists a $36 fee for the QP and company applications submitted through PSI. Exam fees are set by PSI.
• Renewal: Contractor licenses expire two years after issuance or as determined by the division, but in no case less than one year. An unrenewed license is suspended by operation of law and is canceled if not renewed within three months.
• Continuing education: CID's General Building Bureau states it does not have continuing education requirements for contractors. Journeyman electrical, plumbing and mechanical certificate holders need 16 hours every three years (8 hours code change, 8 hours other approved subjects).

Electrical, plumbing and HVAC work

CID also licenses electrical (Electrical Bureau), mechanical and plumbing (Mechanical Plumbing Bureau) and LP gas (LP Gas Bureau) contractors and journeymen.

City and county rules

State law bars a municipality from requiring a licensed contractor to post an additional license bond (NMSA 60-13-51). Building permits are issued by CID or by local jurisdictions.

Working without a license

Acting as a contractor without a license is a misdemeanor. For work of $5,000 or less: up to 90 days in county jail, a fine of $300 to $500, or both. Above $5,000: up to six months in county jail, a fine of 10% of the contract value, or both. Subsequent convictions carry twice the penalty. CID may also assess administrative penalties. An unlicensed contractor cannot sue in state court for compensation and has no right to a mechanic's lien (NMSA 60-13-30).

What to confirm with the state

We couldn't confirm these on an official page when we checked. Ask the licensing office before you rely on them:

• Statute text comes from RLD's posted July 2021 compilation of the Construction Industries Licensing Act; later amendments (including any change to the $7,200 handyman limit) were not checked.
• Full list of GS specialty classifications (roofing, flooring, painting, etc.) and whether a given trade needs GS vs GB-2.
• Whether general liability insurance is required (CID page lists only workers' compensation).
• Exact PSI exam fees.
• Any New Mexico statute on written home improvement contracts or deposit limits.

Sources

1. Construction Industries - NM Regulation and Licensing Department
2. Apply for a Construction Industries License - NM RLD
3. NM CID Bureaus
4. CID Continuing Education
5. Construction Industries Licensing Act, NMSA Chapter 60 Article 13 (RLD-posted compilation, 7/1/2021)
6. 14.6.6 NMAC - Classification and Scope
7. 14.6.3 NMAC - Licensure Requirements (bond)
8. 14.5.5 NMAC - Fees