How to Get a New Mexico Contractor License

In New Mexico, you need a contractor license to legally work within the state. This license ensures that contractors comply with state regulations and complete construction projects according to local building codes and contract terms.

Learn how to get your New Mexico contractor license with this comprehensive guide. 

What Are the Eligibility Requirements for New Mexico Contractor Licensees? 

New Mexico contractor’s licenses are issued to business entities that employ or are owned by certified Qualifying Parties (QPs). QPs must have the necessary experience and pass relevant exams, including a Contractor's Business and Law exam. 

A QP can qualify for multiple companies only if there is at least 30% common ownership; otherwise, they can only qualify for one company.

How to Become a Contractor in New Mexico

To become a contractor in New Mexico, follow these five steps:

Step 1: Determine license classification

In New Mexico, contractor licenses are divided into various classifications. Identify the type of contractor license you need. The primary types are the following:

• GB-2: Residential Building Contractor
• GB-98: General Building Contractor

However, there are many other classifications and sub-classifications including mechanical, electrical, plumbing and more.

Step 2: Pass the required exams

Pass the following exams to obtain your contractor’s license:

• General Contractor Trades Exam
• Business and Law Exam

If you are applying for the GB-98 license, you’ll need to pass both the GB-2 and GB-98 trade exams.

Step 3: Check name availability

Check with PSI to confirm the name you intend to use on the license is available before registering with the state. It must be unique from any existing licensees and accurate to the services you plan to provide. 

Step 4: Provide proof of experience

Complete a notarized Work Experience Affidavit form to prove your trade experience. 

• GB-2 license: 2 years of foreman-level practical or related trade experience. 
• GB-98 license: 4 years of foreman-level experience, with at least 2 years of commercial experience.

Step 5: Purchase a surety bond

Purchase a $10,000 contractor license bond from a licensed surety provider. This ensures that contractors will comply with all state regulations and building codes. 

Buy your New Mexico contractor license bond online now for a flat rate of $250 for the three-year term. 

Step 6: Submit your application

Next, submit your contractor license application to the New Mexico Regulation and Licensing Department. This must include:

• A notarized contractor license application form
• A copy of your qualifying party certificate or proof of passing your contractor exams for each classification
• Proof of financial responsibility
• A current Tax Registration Certificate issued within the last year in the exact name shown on your application OR a copy of the tax registration application with an official stamp 
• Your New Mexico Certificate from NMPRC (for corporations or LLCs) 
• Your New Mexico Certificate from the Secretary of State (for LLPs and LPs)
• A self-addressed 9”x12” envelope with sufficient postage
• $30 application fee plus additional classification fees

Deliver your completed application packet to:

PSI

2820 Broadbent Pkwy NE

Suite E&F

Albuquerque, NM 87107

Once the CID reviews your application, you’ll receive your official license in the mail. The approval process typically takes a few weeks. 

How to Renew Your New Mexico Contractor License

New Mexico contractor licenses are valid for three years from the date of issuance. You will need to renew your license before it expires, which includes submitting the necessary application and paying the renewal fees. The New Mexico contractor license bond also requires renewal every three years. 

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

It can take 7–10 business days to process a complete application for a New Mexico contractor's license. However, the exact time can vary depending on the backlog of applications and how quickly you complete the required steps. It may take an additional 2–4 weeks to receive your actual license. 

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

The initial licensing cost includes several components:

• Application Fee: $36 
• License Fees: Vary based on classification selection, typically $150–$300 
• Surety Bond: $250 for the 3-year term
• Exam Fees: Vary based on the type of exam(s) required. For general contractor exams, the fee is $36 per exam, while specialty exams cost $25 per exam.

The total cost of obtaining your New Mexico contractor license will depend on the specific license and additional requirements. In general, you can expect to pay anywhere between $500–$900 total for your application, license, bond and exam fees. 

More Resources 

• How To Obtain A New Contractor License: New Mexico
• New Mexico E-Services for Contractor Licensing
• New Mexico Contractor Licensing: Frequently Asked Licensing Questions
• New Mexico Licensing Fees
• New Mexico Contractor Industries Division Contractor License Code Bond
• Article 13 Construction Industries Licensing Act NMSA 1978 60-13-1 through 60-13-59