Introduction
In the state of New Mexico, contractor licensing is a critical aspect of ensuring the safety, quality, and professionalism of construction and renovation projects. Whether you’re planning to start a contracting business or work as an independent contractor, obtaining the appropriate licenses is essential. A contractor license is required in the state of New Mexico if you are undertaking a project at a time that does not exceed $7,200. This article will serve as a comprehensive guide to understanding the various licensing requirements for contractors in New Mexico.
Types of New Mexico Contractor Licenses
New Mexico offers different types of general contractor licenses, each tailored to residential, commercial, or both. License applications will be sent in to the New Mexico Regulation and Licensing Department. The primary types of contractor licenses include:
General Building Contractor (GB-2): Allows contractors to construct, alter, or remodel any structure, excluding residential buildings exceeding four units and commercial buildings taller than three stories.
Residential Building Contractor (GB-98): Specifically for contractors involved in the construction, alteration, or remodeling of residential structures containing up to four units.
Residential and Commercial Building Contractor (GB-2/98): Combines the privileges of both the New Mexico General Building Contractor and Residential Building Contractor licenses.
You will need to determine what classification you want to pursue and fill out the classification request form.
New Mexico Accepts the NASCLA Exam
Beginning in 2023, New Mexico began accepting the NASCLA exam for a commercial general contractor’s license.
General Requirements for Licensing
To become a licensed contractor in New Mexico, applicants must meet certain general requirements:
- Age: Applicants must be at least 18 years old.
- Experience: Depending on the type of license, applicants may need to demonstrate a specific amount of work experience in their trade or profession.
- Financial Responsibility: Contractor applicants will provide proof of financial responsibility. Upon initial licensure and as a condition of renewal, each applicant will 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.
- Examination: Most license types require passing a written examination relevant to the trade. As noted above, New Mexico began accepting the NASCLA exam as the trades exam for a commercial general contractor in 2023. This gives the option for the applicant to take the New Mexico GB-98 trades exam or the NASCLA exam. The NASCLA exam in a popular option in many states because it has reciprocity in 16 different states and the U.S. Virgin Islands.
- Application and Fees: Applicants must submit a completed application form along with the appropriate fees. The Application fee for the NASCLA exam is $35.00, and the exam fee is $130.00. The application for the New Mexico GB-98 contractor licenses is a $36.00 and the license fee is $134.53.
Business and Law Exam
Once passing the NASCLA exam or GB-98 trades exam you will need to pass the business and law exam for a New Mexico contractor license. This is a single book exam designed to get you familiar with the rules and regulations of New Mexico. This exam also has a lot of information from the business and law exam that is on the NASCLA exam.
Specific License Requirements
General Building Contractor License (GB-2):
- 4,000 hours of experience in general building construction.
- Pass the GB-2 examination.
- Submit a completed application and the required fee.
New Mexico Commercial Contractor License (GB-98)
- 8,000 hours of experience.
- Pass the GB-98 examination or the NASCLA exam.
- Submit a completed application and the required fee.
- Pass the Business and Law exam.
New Mexico GB-2/GB-98 Contractor License
- 8,000 hours of experience.
- Pass both the GB-2 and GB-98 examinations.
- Submit a completed application and the required fee.
The New Mexico contractor license application contains a General Building Work Experience Verification form that defines the work experience. It states that all experience must be within the last 10 years. For the qualifying party, each year of training may be credited as one-half year of experience.
Conclusion
Obtaining the appropriate New Mexico contractor license is a necessary step to establish a successful and legitimate construction business or career. Understanding the different types of licenses and their corresponding requirements is essential to navigate the licensing process efficiently. By adhering to these requirements and demonstrating competence in their trade, contractors can ensure the safety, quality, and professionalism of construction projects across the Land of Enchantment.