New Mexico Contractor License Requirements

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New Mexico regulates the construction industry through the Construction Industries Division (CID) of the New Mexico Regulation and Licensing Department (RLD) under the Construction Industries Licensing Act (NMSA 1978, Chapter 60, Article 13). Anyone who contracts, bids on, or alters structures must hold an active CID license unless qualifying for the statutory $7,200 minor work exemption (NMSA 1978 § 60-13-3). Every licensee must designate a certified Qualifying Party (QP) who satisfies experience requirements and passes state examinations, and continuously maintain a statutory $10,000 contractor license surety bond (NMSA 1978 § 60-13-49).

1. Construction Industries Division (CID) Licensing Framework

Under NMSA 1978, § 60-13-12, it is unlawful to act in the capacity of a contractor without a valid license issued by the CID. Contracting without a license is a misdemeanor carrying criminal penalties and loss of legal standing to file liens.

Primary Licenses: GB-98 (General Building), GB-02 (Residential Building), EE-98 (Electrical), MM-98 (Mechanical).
Triennial Renewal: Licenses are issued on a 3-year cycle ($150–$300 triennial fee plus $36 application fee).
Workers' Comp: All licensed construction contractors employing workers must maintain active workers' compensation coverage.

Under NMSA 1978, § 60-13-3(D), construction or repair work where the aggregate contract price for labor, materials, and all other items is $7,200 or less is exempt from contractor licensing.

Critical Restriction: The exemption does not apply if the work requires a building permit under the New Mexico Building Code, affects structural bearing walls, or involves electrical, plumbing, or mechanical trade work.

2. Mandatory $10,000 Contractor License Surety Bond (NMSA 1978 § 60-13-49)

Every contractor licensed in New Mexico must execute and file with the CID a $10,000 surety bond or certified cash collateral payable to the State of New Mexico.

The bond serves as statutory financial protection for consumers, property owners, and subcontractors damaged by fraud, code non-compliance, or abandonment of contract obligations. If the surety bond cancels or lapses, the CID automatically suspends the license.

3. Qualifying Party (QP) Architecture (NMSA 1978 § 60-13-17)

A contractor license cannot be issued to any entity without an individual Qualifying Party (QP).

Experience: Must verify 2 years (4,000 hours) for residential/specialty trades, or 4 years (8,000 hours) for general building (GB-98), electrical (EE-98), and mechanical (MM-98).
Examinations: Must pass both the New Mexico Business & Law exam and the technical trade examination via PSI.
Certificate Fee: $30 triennial Qualifying Party certificate fee.

Under the New Mexico Workers' Compensation Act, construction employers must carry active workers' compensation coverage for all employees. Proof of an active policy or verified executive officer exemption certificate is a mandatory prerequisite to obtain or renew a CID license.

4. Building Permits & Code Inspections (NMSA 1978 § 60-13-45)

Under NMSA 1978, § 60-13-45 and NMAC 14.5.2, building permits must be secured prior to commencing construction, structural framing, roof replacement, electrical wiring, or plumbing. Permits are issued either by certified municipal inspection departments (e.g. City of Albuquerque, Santa Fe, Las Cruces) or directly by the CID Permitting Bureau for state-inspected jurisdictions.

6. Official Verification Sources

nm:agency:building-permitspublication

New Mexico Regulation & Licensing Department (RLD) — Construction Industries Division (CID)

New Mexico CID — State Building Permits & Inspection Bureau

https://www.rld.nm.gov/construction-industries/permitting-and-inspections