New Mexico Contractor License Requirements: Complete 2026 Guide

Introduction to New Mexico Contractor Licensing

New Mexico regulates contractors through the Construction Industries Division (CID), a division of the New Mexico Regulation and Licensing Department (RLD). The CID oversees all contractor licensing, permitting, inspections, and enforcement for the state's construction industry. Unlike many states that use a single licensing board, New Mexico organizes CID into specialized bureaus — General Construction, Electrical, Mechanical/Plumbing, and LP Gas — each handling licensing and code enforcement for its respective trades.

The fundamental threshold you need to know: any person or business performing construction work valued at more than $7,200 annually must hold a valid New Mexico contractor's license. This threshold applies to the total value of all construction work performed within a calendar year, not per-project. The Construction Industries Licensing Act (NMSA 1978, Sections 60-13-1 through 60-13-59) governs all contractor licensing requirements in the state.

New Mexico's licensing system is classification-based, with over 100 distinct license classifications ranging from residential building to specialized mechanical and electrical work. Each classification requires its own qualifying party, experience verification, and trade-specific examination. Getting licensed without the right classification — or working without a license — can result in criminal charges, project shutdowns, and the inability to collect payment for work performed.

Table of Contents

1. Types of Contractor Licenses
2. Licensing Requirements
3. Application Process
4. Examination Requirements
5. License Fees and Costs
6. Insurance and Bond Requirements
7. License Renewal
8. Reciprocity with Other States
9. How to Verify a Contractor's License
10. Penalties for Working Without a License
11. Frequently Asked Questions

Types of Contractor Licenses

New Mexico organizes contractor licenses into four major categories, each regulated by a dedicated CID bureau. Within each category are numerous classifications and sub-classifications identified by alphanumeric codes. The full list of classifications and their scopes of work is defined in 14.6.6 NMAC (Classifications and Scopes).

General Construction (G Classifications)

General construction licenses cover building construction, fixed works, and specialty trades. The most commonly sought classifications include:

• GB-2 — Residential Building: Authorizes the erection, alteration, repair, or demolition of residences and apartment houses accommodating not more than four family units. Requires two years (4,000 hours) of foreman-level experience.
• GB-98 — General Building: The broadest general construction license. Authorizes all residential and commercial building construction, including work covered by GB-2, GF-5, GF-7, and GS classifications. Requires four years (8,000 hours) of foreman-level experience, with at least two years in commercial construction.
• GF-1 through GF-9 — Fixed Works: Cover construction, alteration, or repair of fixed or public works facilities such as roads, bridges, dams, pipelines, and utilities. Individual GF classifications require two years of experience.
• GF-98 — General Fixed Works: The comprehensive fixed works license encompassing all GF-1 through GF-9 scopes. Requires four years of experience.
• GA-1 through GA-5 — Asphalt, Bitumen, and Concrete: Cover paving, concrete work, and related construction. Requires two years of experience.
• GA-98 — General Asphalt, Bitumen, and Concrete: Comprehensive paving and concrete license. Requires four years of experience.
• GS-1 through GS-34 — Building Specialties: Cover specific trades like roofing, painting, insulation, fencing, swimming pools, demolition, and more. Each requires two years of experience.

Electrical (E Classifications)

Electrical licenses are regulated by the CID Electrical Bureau:

• EE-98 — Electrical (Residential and Commercial): The broadest electrical contractor license, covering residential, commercial, and industrial electrical work. Requires four years (8,000 hours) of experience.
• EL-1 — Electrical Distribution Systems: Covers overhead and underground electrical distribution. Requires four years of experience.
• ER-1 — Residential Wiring: Limited to electrical work in residential structures of four units or fewer. Requires two years (4,000 hours) of experience.
• ES-1 through ES-10 — Electrical Specialties: Cover niche areas such as sign wiring, low voltage systems, fire alarms, and telecommunications. Each requires two years of experience.

Mechanical and Plumbing (M Classifications)

Mechanical and plumbing licenses are regulated by the CID Mechanical Bureau:

• MM-98 — Mechanical: The comprehensive mechanical license covering plumbing, HVAC, gas fitting, and process piping. Requires four years (8,000 hours) of experience.
• MM-1 — Plumbing: Covers installation, alteration, and repair of plumbing systems. Requires four years of experience.
• MM-2 — Natural Gas Fitting: Covers natural gas piping and appliance installation. Requires four years of experience.
• MM-3 — HVAC: Covers heating, ventilation, air conditioning, and refrigeration systems. Requires four years of experience.
• MM-4 — Process Piping: Covers industrial process piping systems. Requires four years of experience.
• MS-3, MS-6, and other MS classifications — Mechanical Specialties: Cover specific trades like fire sprinklers (MS-12), dry chemical fire protection (MS-14), and other specialized mechanical work. Experience requirements vary, typically two to four years.

LP Gas (L Classifications)

LP Gas (Liquefied Petroleum Gas) licenses are regulated by the CID LP Gas Bureau and cover the installation, repair, and servicing of LP gas systems, containers, and appliances. These classifications have their own specific experience and examination requirements.

Journeyman Certificates

In addition to contractor licenses, the CID also issues journeyman certificates of competence for individual tradespeople in electrical, plumbing, mechanical, and other trades. Journeyman certificates are required for individuals performing trade work and are separate from the contractor license held by the employing business.

Licensing Requirements

New Mexico's contractor licensing requirements revolve around designating a qualifying party, documenting trade experience, passing examinations, and meeting financial and insurance obligations.

Qualifying Party

Every contractor license must have a designated qualifying party (QP) — the individual who demonstrates the required experience and passes the examinations for the license. The qualifying party serves as the responsible individual for the license holder's construction operations. The QP can be a sole proprietor, partner, corporate officer, member/manager of an LLC, or a bona fide employee.

Key rules for qualifying parties:

• A QP can only qualify one contractor license at a time (with limited exceptions)
• If a QP leaves the company, the license holder must designate a replacement QP or the license becomes inactive
• The QP application must be notarized and submitted to PSI Services with a work experience verification form

Experience Requirements

Experience requirements vary by classification. All experience must be at the foreman level — meaning supervisory or hands-on trade experience, not general labor. Experience is documented through notarized work experience affidavits verified by former employers or clients.

• Two-year (4,000 hours) classifications: GB-2, GS series, GA-1 through GA-5, GF-1 through GF-9, ER-1, ES series, and select mechanical specialties
• Four-year (8,000 hours) classifications: GB-98, GA-98, GF-98, EE-98, EL-1, MM-98, MM-1, MM-2, MM-3, MM-4, MS-12, and MS-14

For the GB-98 (General Building) classification, at least two of the four required years must be in commercial construction. Purely residential experience will not satisfy the GB-98 requirement.

Education

New Mexico does not require formal education (such as a degree) for contractor licensing. However, relevant trade school training or apprenticeship programs may count toward the experience requirement. The CID evaluates experience on a case-by-case basis.

Background Check

New Mexico does not require a formal criminal background check as part of the contractor license application. However, the application does ask about prior criminal convictions, and the CID reserves the right to deny or revoke a license based on criminal history related to contracting or fraud.

Application Process

The New Mexico contractor license application is a multi-step process handled through PSI Services, the CID's designated third-party administrator. Here is the step-by-step process:

Step 1: Determine Your Classification

Before applying, identify the correct license classification(s) for the work you intend to perform. If you are unsure, you can submit a Classification Determination Request to PSI describing the types of work you plan to do. Mail your request to:

New Mexico Construction Licensing Services (PSI)
2820 Broadbent Pkwy NE, Suite E & F
Albuquerque, NM 87107
Phone: (877) 663-9267

Step 2: Submit the Qualifying Party Application

Complete and notarize the QP application and work experience verification form. Submit them to PSI along with the $30 QP application fee (plus $6 for each additional classification). Include a self-addressed, stamped envelope for the return of your approval letter. PSI will review your experience documentation and, if approved, authorize you to schedule your examination.

Step 3: Pass the Required Examinations

Once your QP application is approved, you must schedule and pass your examinations within six months. You must pass both the trade-specific exam and the New Mexico Business and Law exam within one year of each other. Your QP certificate is valid for 12 months from the date you pass — you must attach it to a license within that window or it expires.

Step 4: Submit the License Application

After passing your exams, submit your contractor license application packet to PSI. The packet must include:

• Completed license application form
• $36 license application fee
• Classification fee: $300 for major classifications (GB-98, GB-2, GA-98, GF-98, EE-98, MM-98) or $150 for all others
• Proof of a $10,000 surety bond
• Tax registration number from the New Mexico Taxation and Revenue Department
• Qualifying party certificate or exam score reports
• Proof of workers' compensation insurance (if applicable)

Step 5: Receive Your License

Processing typically takes 4 to 6 weeks after PSI receives a complete application. Incomplete applications are the most common cause of delays. Once approved, your license is issued for a three-year term.

Examination Requirements

All qualifying party applicants must pass two examinations: a trade-specific exam for the classification being sought, and the New Mexico Contractor's Business and Law exam. Both exams are administered by PSI Services.

Business and Law Exam

The Business and Law exam is required for every contractor license classification. Key details:

• Format: 50 multiple-choice questions
• Time limit: 2 hours
• Passing score: 75%
• Open book: Yes — you may bring approved reference materials
• Fee: $68.88

Topics covered include business management, the Construction Industries Licensing Act, estimating and bidding, contract management, project management, risk management, safety, labor laws, lien laws, tax laws, and financial management.

Course alternative: A 20-hour course taken from a CID-approved provider may be substituted for the Business and Law exam. Contact PSI or the CID for a list of approved course providers.

Trade-Specific Exams

Each classification has its own trade exam covering the technical knowledge and code requirements for that scope of work. Exam details vary by classification:

• GB-2 (Residential Building) exam fee: $134.53
• GB-98 (General Building) exam fee: $269.06 (includes the GB-2 component)
• General contractor exams: $36 per exam
• Specialty trade exams: $25 per exam
• Passing score: 75% for all trade exams

Most trade exams are open-book. Reference materials typically include the relevant building codes (International Building Code, National Electrical Code, Uniform Plumbing Code, etc.) and New Mexico-specific regulations.

NASCLA Exams

New Mexico accepts the NASCLA (National Association of State Contractors Licensing Agencies) examination as an alternative path for certain classifications:

• The NASCLA Commercial General Building Contractor exam endorses into the GB-98 classification
• The NASCLA Electrical Contractor exam endorses into the EE-98 classification (applicant must show proof of holding a license in another state for at least one full year)

Even with a NASCLA exam, you must still pass the New Mexico Business and Law exam (or complete the approved 20-hour course).

Exam Scheduling and Retakes

Exams are scheduled through PSI at their Albuquerque testing center or at other approved PSI locations. You must schedule your exam within six months of QP application approval. If you fail an exam, you may retake it after a waiting period (verify with PSI for current retake policies and any additional fees).

License Fees and Costs

Here is a complete breakdown of the fees associated with obtaining and maintaining a New Mexico contractor's license:

Application and Licensing Fees

Examination Fees

Other Costs

Total estimated initial cost for a GB-98 General Building license: approximately $700–$1,400 including application fees, exams, classification fee, and surety bond premium. Costs for specialty classifications are lower, typically in the $400–$900 range.

Insurance and Bond Requirements

New Mexico requires a surety bond for all licensed contractors and workers' compensation insurance for businesses with employees. General liability insurance is not mandated by the state, but is effectively required for most commercial work.

Surety Bond

All licensed contractors must maintain a $10,000 contractor license bond filed with the CID. This bond protects consumers by providing a financial guarantee that the contractor will comply with the Construction Industries Licensing Act and applicable building codes. Key details:

• The bond must be underwritten by a corporate surety authorized to transact business in New Mexico
• The bond runs concurrently with the license term (three years)
• Annual premiums typically range from $100 to $700 depending on credit history
• The bond must be maintained continuously — a lapsed bond can result in license suspension
• The bond must be acceptable to the CID director

Workers' Compensation Insurance

All licensed contractors with employees are required to carry workers' compensation insurance. Additionally, corporations and LLCs are required to carry workers' compensation coverage even if they have zero employees (unless they file for an exemption). Sole proprietors and partners without employees may be exempt but should verify with the New Mexico Workers' Compensation Administration.

General Liability Insurance

New Mexico does not require general liability insurance at the state level for contractor licensing. However, as a practical matter:

• Most general contractors and commercial project owners require subcontractors to carry GL coverage
• Some cities and municipalities require proof of general liability coverage for permits
• Industry standard minimums are typically $1,000,000 per occurrence / $2,000,000 aggregate

While not legally required, operating without general liability insurance exposes your business to significant financial risk and will limit the projects you can bid on.

License Renewal

New Mexico contractor licenses are issued for a three-year term and expire on the last day of the month in which the license was originally issued.

Renewal Process

The CID (through PSI) mails renewal application forms to licensees at least 30 days before expiration. To renew, you must submit:

• A completed, notarized renewal application with any updated information
• Current surety bond (or proof of bond continuation)
• Current workers' compensation insurance certificate (if applicable)
• The renewal fee

Continuing Education

Continuing education requirements in New Mexico vary by trade classification:

• General Building (GB) contractors: The General Building Bureau does not currently require continuing education for license renewal
• Electrical licenses: 16 hours per renewal cycle — 8 hours must cover current National Electrical Code changes, and 8 hours of other industry-related approved coursework
• Plumbing and Mechanical certificates: 16 hours per renewal cycle — 8 hours on code changes/updates and 8 hours of other industry-related approved coursework
• Journeyman certificates: CE requirements vary by trade; check with the relevant CID bureau

The CID maintains a list of approved continuing education providers on their website.

Late Renewal and Reinstatement

Failing to renew on time triggers escalating penalties:

• 1–30 days late: $1.00 per day late fee
• 31–90 days late: Late fee equivalent to one year's license fee
• After 90 days: The license is cancelled

If your license expires, you will receive a license suspension notice 15 days after the expiration date. Working on a suspended or expired license carries the same penalties as working without a license. If your license is cancelled after 90 days, you must reapply as a new applicant, including re-taking examinations.

Reciprocity with Other States

New Mexico does not have direct reciprocity agreements with other states for general contractor licenses. If you hold a contractor license in another state, you must go through the full New Mexico application process, including examinations.

NASCLA Exam Acceptance

While there is no direct reciprocity, New Mexico does accept NASCLA examinations as an alternative to the state-specific trade exam for certain classifications:

• NASCLA Commercial General Building Contractor exam → endorses into GB-98 (General Building)
• NASCLA Electrical Contractor exam → endorses into EE-98 (Electrical), but the applicant must show proof of holding a license in another state for at least one full year

You still must pass the New Mexico Business and Law exam (or complete the approved 20-hour course) even when using a NASCLA exam. All other application requirements — experience verification, surety bond, fees — remain the same.

Journeyman Reciprocity

New Mexico does have reciprocity for journeyman certificates with several states. If you hold a journeyman certificate in one of the following states, you may qualify for a New Mexico journeyman certificate without re-examination:

• Alaska
• Arkansas
• Colorado
• Idaho
• Montana
• Nebraska
• Oklahoma
• South Dakota
• Texas
• Utah
• Wyoming

Contact the relevant CID bureau to confirm current reciprocity requirements and which trades are covered.

How to Verify a Contractor's License

You can verify any New Mexico contractor's license through the RLD's online verification system:

• License Verification Portal: verification.rld.state.nm.us
• PSI License Search: public.psiexams.com/search.jsp

You can search by contractor name, license number, or business name. The lookup tool shows the license status (active, expired, suspended, or revoked), classifications held, and the qualifying party on record.

CID Contact Information

Construction Industries Division — Albuquerque (Main Office)
5500 San Antonio NE
Albuquerque, NM 87109
Phone: (505) 222-9800

CID — Las Cruces Office
505 South Main Street, Suite 103
Loretto Town Center
Las Cruces, NM 88001
Phone: (575) 524-6320

PSI Services (Licensing and Exam Administration)
2820 Broadbent Pkwy NE, Suite E & F
Albuquerque, NM 87107
Phone: (877) 663-9267

RLD General Line: (505) 476-4700

Penalties for Working Without a License

New Mexico takes unlicensed contracting seriously. The CID has the authority to stop construction projects and pursue both criminal and administrative penalties under the Construction Industries Licensing Act, Section 60-13-52.

Criminal Penalties

Working as a contractor without a license is a misdemeanor in New Mexico. Penalties are based on the dollar value of the work performed:

• Work valued at $5,000 or less: Up to 90 days in county jail and/or a fine of $300 to $500
• Work valued over $5,000: Up to 6 months in county jail and/or a fine of 10% of the dollar value of the contracting work
• Journeyman working without a certificate: Up to 90 days in county jail and/or a fine of $100 to $300
• Repeat offenders: Double the applicable penalty for any subsequent conviction

Administrative Penalties

Under Section 60-13-23.1, the CID may also assess administrative penalties:

• Work valued at $5,000 or less: Fine of $300 to $500
• Work valued over $5,000: Fine of up to 10% of the contract/work amount (minimum $500)
• Repeat violations: Double the first-offense penalty amount
• Failure to pay: An additional $100 per day of non-compliance

Other Consequences

• The CID may issue a stop-work order and halt the construction project
• Criminal charges are filed in Metropolitan or Magistrate Court
• Unlicensed contractors cannot file mechanics' liens under New Mexico law
• Unlicensed contractors cannot sue for payment for work performed — Section 60-13-30 requires proof of licensure to bring suit for compensation
• Convicted violators are ineligible for licensure for one year from the date of conviction
• Homeowners may be able to recover payments made to unlicensed contractors

Frequently Asked Questions

Do I need a license for handyman work in New Mexico?

If your total construction-related work exceeds $7,200 in annual revenue, you need a license regardless of the type of work. There is no separate "handyman exemption" in New Mexico. Small jobs that collectively exceed the threshold require licensure.

How long does it take to get a New Mexico contractor's license?

Expect the entire process to take 2 to 3 months from start to finish. This includes QP application review (2–4 weeks), scheduling and passing exams (varies), and license application processing (4–6 weeks). Incomplete documentation is the most common cause of delays.

Can I use my out-of-state license in New Mexico?

No. New Mexico does not have reciprocity for contractor licenses. You must apply through the full process, including passing New Mexico exams. However, you may be able to use a NASCLA exam to satisfy the trade exam requirement for GB-98 or EE-98 classifications. Journeyman certificates from select states may transfer through reciprocity agreements.

What is the difference between GB-2 and GB-98?

GB-2 (Residential Building) limits you to residences and apartment buildings with four or fewer units. It requires two years of experience. GB-98 (General Building) covers all residential and commercial construction and requires four years of experience, with at least two years in commercial work. If you plan to do any commercial construction, you need GB-98.

Do I need a separate license for each trade?

Yes. Each classification covers a specific scope of work. A GB-98 license does not authorize you to perform electrical (EE-98) or mechanical (MM-98) work. You need a separate license — or a separate licensed subcontractor — for each trade. You can hold multiple classifications on a single license if you have a qualifying party for each.

What happens if my qualifying party leaves my company?

You must designate a new qualifying party or your license becomes inactive. The new QP must meet all experience and examination requirements for the classifications on your license. Operating without a valid QP on your license is treated the same as operating without a license.

Conclusion

New Mexico's contractor licensing system is comprehensive and classification-specific, managed by the Construction Industries Division through PSI Services. The $7,200 annual threshold is low, meaning most active contractors need to be licensed. The key steps are straightforward: verify your experience, pass your trade and business law exams, secure your surety bond, and submit a complete application.

For the most current fee schedules, exam information, and application forms, contact PSI at (877) 663-9267 or visit the CID licensing page. For questions about specific classifications, enforcement, or code requirements, contact the CID Albuquerque office at (505) 222-9800.