How to Get a Contractor License in New Mexico

Under 14.6.3.8 NMAC, licenses go only to business entities that employ or are owned by a qualifying party certified by CID in the same classification. The license lets the entity contract only in the classifications printed on it and on its qualifier's certificate. Corporations, LLCs, partnerships and sole proprietorships must each be authorized to do business in New Mexico, and a sole proprietor's license cancels automatically on death.

The qualifying party must be at least 18, may not take other work that conflicts with supervising the licensee, and may qualify more than one entity only where the entities share at least 30 percent common ownership. If a licensee loses its qualifier, both must tell CID in writing within 30 days. A license left without a qualifier is cancelled, and work already under way may continue for no more than 120 days.

Classification codes describe the field and type of work. CID's rule explains GB-2 as General construction (G), Building (B), Residential (2). The main groups are general construction (GA, GB, GF and GS specialties), electrical (EE and ES), and mechanical (MM and MS). A few that many applicants choose:

Before you can test, you must prove the experience your classification requires. The licensing rule looks at work experience in the ten years immediately before the application. Technical training from an accredited college, university, manufacturer's program, technical vocational institute or apprenticeship can substitute, but each year of training counts as half a year of experience, and training can never make up more than half of the requirement.

Military service members, spouses, dependent children and veterans who hold a substantially equivalent credential in another jurisdiction can apply for expedited certification in place of work-experience verification, and service members and veterans are not charged license fees for the first three years.

CID has contracted with PSI to run both the exam approval process and the testing, and PSI hosts the application forms. You must be pre-approved before booking. All requirements must be met within six months of CID or its designee receiving your application, or the application expires and the fees are forfeited.

Contractor applicants take a trade exam for the classification and must either pass the Business and Law exam or complete a Business and Law course from the approved list posted on PSI's site. When you take both exams, they must be passed within one year of each other. The passing score on qualifying exams is 75 percent. The bureau chief may waive the state trade exam for someone who has passed a NASCLA accredited general construction or electrical exam at the passing score.

ContractorPrepHQ offers New Mexico Business and Law practice for $99 and trade practice for GB-2, GB-98, EE-98, MM-1 and MM-3 at $149, which includes the Business and Law practice. It is an exam-practice tool with original questions, a diagnostic, topic drills and timed practice exams; it is not one of the Business and Law courses on PSI's list.

At initial licensure and at every renewal, 14.6.3.8(C) requires a $10,000 bond from a corporate surety authorized in New Mexico, in force for the whole license period. Claims against it must be made within two years of final inspection or the certificate of occupancy, whichever comes first, and it is used to cure code violations CID certifies that the licensee caused and did not fix. If the surety gives notice of cancellation and no new bond is filed, CID moves to cancel the license.

The fee schedule in 14.5.5 NMAC sets a $30 nonrefundable application fee for an initial license or added classification. The license fee for GA-98, GB-2, GB-98, GF-98, EE-98 and MM-98 is $100 a year, or $200 for two years, per classification; most other classifications are $50 a year. Exam fees are paid to PSI separately. That rule dates from 2004, so confirm current amounts with CID.

CID or its designee mails a renewal form at least 30 days before expiration, but renewing on time is the licensee's job whether or not the form arrives. Every current qualifying party must sign the renewal. A late or rejected renewal leads to suspension and possible cancellation under NMSA 60-13-18.

A license can also become invalid for failing to keep the bond, failing to comply with workers' compensation law, losing authority to do business in New Mexico, or losing its qualifier. A new qualifying party certificate that does not attach to a license within 12 months of the exam score expires, as does one that goes two straight years without qualifying a license. As for continuing education, CID's page states that the General Building Bureau has no continuing education requirement for contractors; the CE rules it describes apply to journeyman electrical, plumbing and mechanical certificates.