Licensing Guides

State Contractor License: How to Become a General Contractor in New Mexico

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Table of Contents

Why Do You Need a Contractor License in New Mexico?

How Can You Get a Contractor License in New Mexico?

Types of General Contractor Licenses in New Mexico

What Are the Requirements of a New Mexico Contractor License?

How Long Does It Take to Get a Contractor License in New Mexico?

How Much Does It Cost to Get a Contractor License in New Mexico?

New Mexico Contractor License Training Programs and Schools

Does New Mexico Reciprocate Contractor Licenses?

Do I Need to Renew my Contractor License in New Mexico?

Are There Any Penalties for Contracting Without a License in New Mexico?

National Certifications

Continuing Education

We all need a place to live and work, and those buildings require upkeep and repair. They’re often the biggest investments we make in our lives, and keeping them in good condition is essential. We count on professionals to know how to fix damage to or wear and tear on our homes and businesses. General contractors are typically the experts we rely on to help us with these repairs, and we need these people to know what they’re doing.

Many states require contractors to be licensed. Others simply require solid insurance to back up the essential work they perform. There are 520,900 construction managers and 1,599,800 construction laborers and helpers nationwide, according to the Bureau of Labor Statistics (BLS). New Mexico employs 1,270 managers and 10,930 laborers and helpers. The national number for managers is projected to grow 9% from 2023 to 2033 and 8% for laborers and helpers. In New Mexico, according to CareerOneStop, the U.S. Department of Labor’s job search website, the projected growth rate for laborers and managers is higher at 14%. If you’re thinking about becoming a contractor or you want a job in the field, you need to know the requirements in your state or local jurisdiction. This guide will help you determine what you need before you get started. 

Why Do You Need a Contractor License in New Mexico?

A contractor license is necessary to perform most general construction work legally in the state of New Mexico. Anyone engaged in construction-related contracting in New Mexico must be licensed. This includes general construction work, electrical, mechanical and plumbing, and LP gas. Specifically, you need a contractor license to do any construction project valuing more than $7,200 per year. 

The New Mexico Regulation and Licensing Department (NMRLD) Construction Industries Division (CID) issues all contractor licenses.

How Can You Get a Contractor License in New Mexico?

The New Mexico Regulation & Licensing Department offers a guide for obtaining a Construction Industries License. The Residential license requires two years (4,000 hours) of work experience, and the General Building license requires four years of experience (8,000 hours). You also have to pass a licensing exam.

Types of General Contractor Licenses in New Mexico

There are many contractor license classifications in New Mexico. To figure out which classification you require, fill out a classification determination request form. The main classifications for general contractors are:

  • GB-2 Residential: Erect, alter, repair, or demolish homes, residences, and apartment houses accommodating four family units or less.

  • GB-98 General Building: Erect, alter, repair, or demolish residential and commercial buildings and certain structures. 

These licensure classifications include many specialty classifications under them, such as:

  • GS-1 Acoustical insulation and insulation

  • GS-2 Awnings and canopies

  • GS-4 Concrete, cement, walkways, and driveways

  • GS-5 Demolition

  • GS-7 Drywall installation and texture

  • GS-8 Earthmoving, excavating, and ditching

  • GS-9 Escalators, elevators, and related machinery

  • GS-13 Framing

  • GS-14 Windows, doors, and skylights

  • GS-15 Caissons, piers, and pile driving

  • GS-16 Masonry

  • GS-21 Roofing

  • GS-23 Sign construction (non-electrical)

  • GS-24 Structural steel erection

  • GS-25 Swimming pools (non-mechanical/electrical)

  • GS-30 Plastering, stucco, and lathing

  • GS-31 Siding

  • GS-32 Miscellaneous sheet metal

  • GS-34 Concrete coring, drilling, and slab sawing

GB-2 Residential only allows for the above specialty classifications in residential construction, while GB-98 allows for them in relation to residential, commercial, and construction work, whether that be initial construction, service, or replacement to properties. Then GB-98 license also includes the following classifications:

  • GF-5 Recreation areas

  • GF-6 Railroad and tunnel construction

  • GF-7 Tanks and towers

Getting a general contractor license

Obtaining a contractor license in New Mexico requires the following process:

APPLY TO BECOME A QUALIFYING PARTY: First, you need to obtain a qualifying party certificate through public.psiexams.com. This ensures you are validly certified by CID to perform the scope of work you wish to become licensed for. To become a QP, the applicant must submit a completed qualifying party application and work experience affidavit to PSI with a $36 fee. The applicant’s signature must be notarized.

PASS REQUIRED EXAM: If the affidavit and work experience are accepted, approval notice will be sent to the applicant with trades exam instructions, which are also available on the PSI website. You can then schedule the appropriate open-book exams with PSI. Both license types require taking a New Mexico Business and Law exam, which incurs a $68.88 exam fee. The GB-2 Residential exam fee is $134.53, and the GB-98 General Building exam (which includes a portion for GB-2) fee costs $269.06.

APPLY FOR LICENSE: Upon passing, submit the following documents to PSI: license application, $10,000 license bond, tax registration certificate from the Tax and Revenue Department, proof of registration with the Secretary of State (if applicable), and a copy of your passing scores from PSI. 

The contractor license bond of $10,000 is required for a license to be issued or renewed. The bond is filed for the benefit of consumers who may have sustained damage as a result of defective construction or other license violations, and for the benefit of employees who have not been paid wages that are due to them. 

A $36 license fee and $300 classification fee apply. Once the packet is approved, you will receive your license in the mail. 

You can also consult our guides to getting your HVAC license, plumbing license, or electrical license in New Mexico.

What Are the Requirements of a New Mexico Contractor License? 

The license requirements for a contractor in New Mexico are all intended to demonstrate that an individual who will be serving the public is properly prepared to do the job right. To that end, there are age, knowledge/experience, and financial prerequisites.

  • Must be at least 18 years of age.

  • Must have two years of full-time experience for GB-2 Residential license or four years of full-time experience for GB-98 General Building license.

  • Demonstrate competency by passing all parts of the licensing examinations.

  • Obtain license bond and workers’ compensation insurance.

  • Pay all fees.

How Long Does It Take to Get a Contractor License in New Mexico?

Becoming a residential building contractor requires two years (4,000 hours) of work experience, and the General Building license requires four years (8,000 hours). While they don’t need to be consecutive, they do need to be for full-time work within the last 10 years. 

Technical training by an accredited college, university, manufacturer’s accredited training program, technical vocational institute, or an accredited apprenticeship program counts toward the work experience requirement. Each year of equivalent training shall be applied as one-half year of experience, but accredited training can’t exceed more than half of the work experience requirement. 

What Business Owners Need to Know

Being efficient in the contracting world, no matter where you are in your licensing journey, takes work. ServiceTitan’s cloud-based, all-in-one contracting software gives workers and business owners in residential field service, commercial contracting, or new construction the technology they need to do the work efficiently, and the data they need to do it effectively.  

ServiceTitan features:

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  • Sales presentations that make conversations with customers easier and drive the average ticket.

  • Mobile payment acceptance, eliminating lost checks and increasing cash flow.

To learn more, schedule a demo with a product expert today.

How Much Does It Cost to Get a Contractor License in New Mexico?

The cost to obtain a contractor license in New Mexico includes:

  • Qualifying party application: $36

  • Exam fees: $68.88 for required Business and Law exam, $134.53 for GB-2 Residential exam, and $269.06 for the GB-98 General Building exam (which includes a portion for GB-2)

  • License: $36 license fee, plus $300 classification fee

All in, the GB-2 license costs add up to $575.41, and the GB-98 license costs add up to $709.97.

New Mexico Contractor License Training Programs and Schools

Technical training by an accredited college, university, manufacturer’s accredited training program, technical vocational institute, or an accredited apprenticeship program counts toward the work experience requirement. There are many higher education options throughout The Land of Enchantment that offer construction training programs. Those schools include:

Does New Mexico Reciprocate Contractor Licenses?

While New Mexico has reciprocity agreements for the journeyman electrical and HVAC licenses, the state doesn’t offer New Mexico construction reciprocity agreements with other states for general contractor licenses. 

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Do I Need to Renew my Contractor License in New Mexico?

Yes, New Mexico contractor licenses expire every three years, effective on the last day of the month in which it was issued. To renew, you must submit the notarized renewal application to PSI. Include valid bond information for your contracting business and a self-addressed envelope with sufficient postage. This is how PSI will send your new certificate. 

Note: These materials can’t be faxed or emailed. They must be mailed to PSI at 2820 Broadbent Pkwy NE, Suite E&F, Albuquerque, NM 87107. The application fee is $75, plus $150 for the classification. 

Are There Any Penalties for Contracting Without a License in New Mexico?

Yes, contracting without a license in New Mexico is against the law. Penalties are set by law in Section 60-13-52.A of the Construction Industries Licensing Act. For contracting work less than $5,000, the unlicensed contractor may be sentenced to county jail for 90 days and/or incur a fine of $300 to $500.

For unlicensed contracting work above $5,000, the contractor may be sentenced to the county jail for six months, be fined 10% of the dollar value of the contracting work, or both. 

National Certifications

Other certifications can help you demonstrate your proficiency to potential employers and clients. There are many professional organizations that offer certification. These certifications are not required but can add to your marketability and therefore increase your opportunity to make more money. 

Some of the top construction certifications are:

Continuing Education

There are no continuing education requirements for general contractor licenses in New Mexico.

Resources

You can stay up to date on contracting industry news several ways:

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