New Mexico General Contractor License: Your Complete Guide

There is no doubt that being a licensed contractor in New Mexico is a wise decision.  

For one thing, the state's construction sector is steadily expanding ; as a result, gaining the necessary certification assures state compliance and provides access to larger projects with greater income potential. 

This article contains comprehensive information regarding New Mexico general contractor licensing requirements, such as who requires a license, the application procedure, and related costs. 

Do You Need a New Mexico General Contractor License? 

If you are asking whether you should acquire a contractor license, the answer is YESif your projects surpass $7200. The licensing requirement for contractors in New Mexico exists when project costs exceed the specified amount, and this process is strictly monitored by the state Construction Industries Division (CID).  

Working without a license will result in fines and project delays and potentially lead to criminal consequences if you get caught. A contractor license brings credibility to your company while enabling you to pursue bigger contracts.  

Contractor Training Center has helped countless people achieve their goal of earning their contractor’s license. Take a look at our New Mexico contractor exam prep materials or call us for more info--(888) 585-7350! 

Understanding Classifications (and the General Contractor License) 

Not all contractors in New Mexico are granted the same license. Rather, licenses are categorized according to the kind of work, commercial, residential, HVAC, electrical, plumbing, and more. 

If you’re planning to operate as a general contractor, you’ll most likely fall under the GB-98 (General Building) classification. Instead of being restricted to a particular profession, this license enables you to work on a variety of residential and commercial building projects. 

Are you unsure which category best fits your needs? The majority of applicants save time by receiving professional advice up front, but PSI (the state's testing partner) can assist through a "classification determination request." To prevent you from wasting months applying under the incorrect category, we at CTC guide you through the classification process. 

Step-by-Step Guide: How the New Mexico GC Application Works 

Here’s what the process looks like in practice: 

It is a very simple process, but the most important thing is to double-check your documents before submitting them because the most frequent reason applications are delayed is missing information. 

Who is Eligible for a General Contractor License in New Mexico? 

You must:  

What It Costs 

Here's a reasonable split of fees: 

The cost to earn your general contractor license in New Mexico is less than those in other states, but you should strongly consider investing in exam prep and insurance. 

Keeping Your New Mexico Contractor License Active 

After obtaining your license, you must renew it every three years.  

The renewal process requires you to submit a notarized renewal application while maintaining your bond and paying the renewal fee and sending everything through another self-addressed stamped envelope (SASE). 

Your license becomes subject to suspension after the 15-day grace period expires when you fail to renew it on time. Make sure to set reminders in advance because failing to do so will result in license suspension. 

What About Reciprocity? 

The licensing process in New Mexico is mandatory for contractors who hold licenses in other states. The state of New Mexico does not recognize contractor licenses from other states, so you must fulfil all state requirements from scratch.  

Insurance and Bonding: What You Really Need 

In addition to the $10,000 surety bond that all contractors in New Mexico are required to carry, most clients expect you to carry general liability insurance, which protects you if something goes wrong on the job. 

Other coverage to consider includes workers' compensation insurance (which is required if you have three or more employees) and commercial auto insurance (which must comply with New Mexico's minimum coverage limits).  

Consider insurance as an additional layer of professionalism; it demonstrates to clients that you take your work seriously and are prepared for any unforeseen circumstances.      

Helpful Resources 

To make the process easier, here are a few official sites you’ll want to keep handy: 

Are You Ready to Pursue Your NM Contractor’s License? 

The process of obtaining a New Mexico general contractor license requires planning, yet the steps become straightforward when you break it down into verification of classification and exam passing, and paperwork submission and bond maintenance. 

If you want to become licensed, you should avoid self-study. CTC has assisted thousands of contractors with NASCLA exam preparation and state requirement compliance, and we can provide the same support to you. 

Ready to take the next step? Our New Mexico contractor license exam prep courses are available for you to explore today, which will help you achieve success.