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Quick answer
New Mexico's Construction Industries Licensing Act bars acting as a contractor without a contractor's license from the Construction Industries Division, classified for the work involved. Classes include GB-2 (residential) and GB-98 (general building). The qualifying party passes the exam or exams for the classification sought and a Contractor's Business and Law exam, which a Business & Law course may replace.
New Mexico · Contractor licenseVerified 2026-10-07
State license
Contractor's license (residential and commercial)
New Mexico's Construction Industries Licensing Act says no person shall act as a contractor without a license issued by the division classified to cover the type of work to be undertaken. The Construction Industries Division issues licenses to business entities that employ or are owned by one or more qualifying parties certified by the division; its classifications include GB-2 (residential) and GB-98 (general building, residential and commercial).
The qualifying party passes the exam or exams for the classification sought and a Contractor's Business and Law exam; the division's page says a Business & Law course may be scheduled with approved vendors in lieu of the Business & Law exam
Contractor's license (residential and commercial). New Mexico's Construction Industries Licensing Act says no person shall act as a contractor without a license issued by the division classified to cover the type of work to be undertaken. The Construction Industries Division issues licenses to business entities that employ or are owned by one or more qualifying parties certified by the division; its classifications include GB-2 (residential) and GB-98 (general building, residential and commercial).
Threshold. The Act's definition of contractor does not include an individual who works on one undertaking or project at a time that, in the aggregate or singly, does not exceed $7,200 compensation a year, the work being casual, minor or inconsequential, such as handyman repairs. The exemption does not apply to any undertaking or project pertaining to the installation, connection or repair of electrical wiring, plumbing or gas fitting, and it applies only where the work is not part of a larger or major operation, the individual does not advertise or maintain a sign, card or other device indicating qualification to engage in the business of contracting, and the individual files an annual declaration with the division that the individual is not a contractor.
A. No person shall act as a contractor without a license issued by the division classified to cover the type of work to be undertaken.
NMSA 1978, § 60-13-12(A) (RLD compilation dated 7.1.21) · Official text · retrieved 2026-10-06
CID issues licenses to qualified business entities that employ or are owned by one or more Qualifying Parties (QP) who are validly certified by CID to perform the scope of work in which the licensee intends to engage.
14.6.6.9(B)(1) NMAC · Official text · retrieved 2026-10-03
(2) GB-98. General building. Requires four years of foreman level practical or related trade experience of which at two years must be commercial experience. Erect, alter, repair or demolish residential and commercial buildings, and certain structures;
14.6.6.9(B)(2) NMAC · Official text · retrieved 2026-10-03
D. does not include:
NMSA 1978, § 60-13-3(D) (RLD compilation dated 7.1.21) · Official text · retrieved 2026-10-06
an individual who works on one undertaking or project at a time that, in the aggregate or singly, does not exceed seven thousand two hundred dollars ($7,200) compensation a year, the work being casual, minor or inconsequential, such as handyman repairs;
NMSA 1978 Chapter 60, Article 13 (RLD compilation dated 7.1.21), § 60-13-3 exemptions · Official text · retrieved 2026-10-03
provided that this exemption shall not apply to any undertaking or project pertaining to the installation, connection or repair of electrical wiring, plumbing or gas fitting as defined in Section 60-13-32 NMSA 1978 and provided: (a) the work is not part of a larger or major operation undertaken by the same individual or different contractor; (b) the individual does not advertise or maintain a sign, card or other device which would indicate to the public that he is qualified to engage in the business of contracting; and (c) the individual files annually with the division, on a form prescribed by the division, a declaration substantially to the effect that he is not a contractor within the meaning of the Construction Industries Licensing Act, that the work he performs is casual, minor or inconsequential and will not include more than one undertaking or project at one time and that the total amount of such contracts, in the aggregate or singly, will not exceed seven thousand two hundred dollars ($7,200) compensation a year;
NMSA 1978, § 60-13-3(D)(14) (RLD compilation dated 7.1.21) · Official text · retrieved 2026-10-06
License classes
Class
Scope
Source
GB-2, Residential
Erect, alter, repair or demolish residences and apartment houses accommodating not more than four family units
of foreman level practical or related trade experience. Erect, alter, repair or demolish residences and apartment houses accommodating not more than four family units,
14.6.6.9(B)(1) NMAC · Official text · retrieved 2026-10-03
Requirements
Exam. The qualifying party passes the exam or exams for the classification sought and a Contractor's Business and Law exam; the division's page says a Business & Law course may be scheduled with approved vendors in lieu of the Business & Law exam. Source: RLD CID, Apply for a Construction Industries License
Bond. A bond of $10,000 underwritten by a corporate surety authorized to transact business in New Mexico, upon initial licensure and as a condition of renewal. License bond in New Mexico. Source: 14.6.3.8(C)(1) NMAC
QP applicants must have the required number of years experience in the field in which they are applying. The experience must be within the 10 years immediately preceding application.
(1) Upon initial licensure and as a condition of renewal each applicant shall furnish to the division a bond in the amount of ten thousand dollars ($10,000) underwritten by a corporate surety authorized to transact business in New Mexico.
14.6.3.8(C)(1) NMAC · Official text · retrieved 2026-10-06
NOTE: Workers Compensation coverage is required for all licensed entities.
The basic fee for an initial license or for renewal of a license for the GA-98, GB-2, GB-98, GF-98, EE-98 or MM-98 classification shall be $100.00 per year, or $200.00 for two years, for each such classification.
14.5.5.8(B) NMAC · Official text · retrieved 2026-10-03
[14.5.5.8 NMAC - Rp, 14.5.5.8 NMAC, 7-1-04]
14.5.5.8 NMAC, history · Official text · retrieved 2026-10-06
The company must submit a completed license application to PSI with: $36 application fee and applicable license fees
Term and renewal. A contractor's license expires two years after the issuance date or as determined by the division, but in no instance less than one year, and is renewable upon application to the division and payment of the prescribed renewal fee.
Continuing education. Licensees may be required to complete continuing education as a prerequisite for renewal. When required by rule adopted by the division, a renewal applicant submits proof of eight hours of instruction in code change and eight hours of instruction in other industry-related and division-approved subjects, completed within the three years before the renewal application.
B. Contractor's licenses shall expire two years after the issuance date or as determined by the division, but in no instance less than one year, and shall be renewable upon application to the division and payment of the prescribed renewal fee;
NMSA 1978, § 60-13-18(B) (RLD compilation dated 7.1.21) · Official text · retrieved 2026-10-06
D. Licensees and journeyman certificate holders may be required to complete and submit proof of continuing education as a prerequisite for renewal of a license. When required by rule adopted by the division, an applicant for a license renewal must submit with the application for license renewal proof of eight hours of instruction in code change and eight hours of instruction in other industry-related and division-approved subjects. The sixteen hours of continuing education must have been completed within the three years prior to the date of the license renewal application.
NMSA 1978, § 60-13-18(D) (RLD compilation dated 7.1.21) · Official text · retrieved 2026-10-06
Contracting without a license
Acting in the capacity as a contractor without a license required by the Construction Industries Licensing Act, or holding oneself out as a sales representative of a contractor without the required license, is a misdemeanor. Where the dollar value of the contracting work is $5,000 or less, the court sentences the person to ninety days in the county jail or a fine of $300 to $500, or both; where it exceeds $5,000, to six months in the county jail or a fine of ten percent of the dollar value of the contracting work, or both, in the discretion of the court. A person who is convicted again under the section after having been convicted and sentenced under either of those provisions is sentenced to twice the applicable penalty.
A. Any person who acts in the capacity as a contractor within the meaning of the Construction Industries Licensing Act without a license required by that act, and any person who holds himself out as a sales representative of a contractor which contractor is without a license as required by that act, is guilty of a misdemeanor, and upon conviction therefor the court shall: (1) where the dollar value of the contracting work is five thousand dollars ($5,000) or less, sentence the person to be imprisoned in the county jail for a term of ninety days or to the payment of a fine of not less than three hundred dollars ($300) nor more than five hundred dollars ($500), or to both such imprisonment and fine in the discretion of the court; and (2) where the dollar value of the contracting work exceeds five thousand dollars ($5,000), sentence the person to be imprisoned in the county jail for a term of six months or to the payment of a fine of ten percent of the dollar value of the contracting work, or to both such imprisonment and fine in the discretion of the court.
NMSA 1978, § 60-13-52(A) (RLD compilation dated 7.1.21) · Official text · retrieved 2026-10-06
C. Any person who, after having been convicted and sentenced in accordance with the provisions of either Subsection A or Subsection B of this section, is again convicted pursuant to the provisions of this section shall be sentenced to twice the applicable penalty imposed by the provisions of this section.
NMSA 1978, § 60-13-52(C) (RLD compilation dated 7.1.21) · Official text · retrieved 2026-10-07
In New Mexico the credential is a contractor's license, issued by the Construction Industries Division of the New Mexico Regulation and Licensing Department. The Construction Industries Licensing Act ties each license to a classification, and the license is classified to cover the type of work to be undertaken [1].
The division licenses business entities. Each one either employs or is owned by at least one qualifying party, a person the division has certified for the scope of work the company plans to take on [2]. The exam and experience requirements attach to that qualifying party.
The Act's definition of contractor leaves out an individual handling casual, minor or inconsequential work, such as handyman repairs, on one project at a time, where the compensation does not exceed $7,200 [1] a year. That exclusion carries conditions. It does not apply to the installation, connection or repair of electrical wiring, plumbing or gas fitting. It holds only when the work is not part of a larger operation, the individual does not advertise or display anything suggesting qualification to contract, and the individual files a yearly declaration with the division stating that the individual is not a contractor [1].
Classes and qualifications
The residential class, GB-2 [3], covers residences and apartment houses of up to four family units. The general building class, GB-98 [3], reaches residential and commercial buildings along with certain structures. Both cover erecting, altering, repairing and demolishing within their scope.
Experience is set by class and counted at the foreman level in practical or related trade work. GB-2 calls for two years [3]. GB-98 calls for four years, of which two years [3] must be commercial. In either case the years have to fall within the 10 years [2] just before the application.
The qualifying party also passes the exam or exams for the classification sought, plus a Contractor's Business and Law exam. The division's page adds that a Business and Law course scheduled with approved vendors may stand in place of that second exam [2].
Each applicant furnishes the division a $10,000 [4] bond from a corporate surety authorized to do business in New Mexico, at first licensure and again as a condition of each renewal. The division also requires workers' compensation coverage for every licensed entity [2].
Cost and renewal
As of August 18, 2026, the license application fee, paid to PSI, is $36 per application [2]. The qualifying party pays its own application fee to PSI [2], and each GB-2 or GB-98 classification carries a license fee set by rule [5].
A contractor's license runs out two years [1] after it is issued, or on a date the division sets, but not sooner than one year [1]. Renewal means applying to the division and paying the renewal fee. The Act lets the division require continuing education before renewal. Where a division rule calls for it, the renewal applicant shows eight hours [1] on code changes and eight hours [1] on other approved industry subjects, all finished within the three years [1] before the renewal application.
Working without the credential
The Act makes it a misdemeanor to act as a contractor without the license it requires, and the same applies to someone presenting themselves as a sales representative for an unlicensed contractor. Sentencing turns on the dollar value of the contracting work. At $5,000 [1] or less, the court sentences the person to ninety days [1] in the county jail, a fine between $300 [1] and $500 [1], or both. Above $5,000 [1], the sentence is six months [1] in the county jail, a fine of ten percent [1] of the work's dollar value, or both, at the court's discretion. A person convicted again after an earlier conviction and sentence under the section receives twice the applicable penalty [1].
