HomeNew MexicoGeneral Contracting
GENERAL CONTRACTING x NEW MEXICO

General Contracting contractor requirements in New Mexico.

The Construction Industries Licensing Act (NMSA 1978 § 60-13-12) bars anyone from acting as a contractor or bidding without a CID license classified for the work. GB-2 Residential covers homes and apartment buildings of up to four units and every GS specialty when done on residential work; its qualifying party needs two years of foreman-level experience. GB-98 General Building covers residential and commercial buildings and requires four years of foreman-level experience, two of them commercial.

Licenses go to business entities qualified by a qualifying party who has passed a trade exam and the Business & Law exam (or an approved course). Every licensee posts a $10,000 surety bond, carries workers' compensation, prints its license number on bids and permit applications, and gives residential clients CID's written disclosure. Electrical and mechanical work inside a general contract must be performed by contractors licensed in those trades.

STATE LICENSE
RequiredNew Mexico Regulation & Licensing Departm…
STATUTE
NMSA 1978 §§ 60-13-3, 60-13-12, 60-13-16; 14.6.6.9(B) NMAC
RENEWAL
Up to 2 years per term (NMSA § 60-13-18)None for general building contractors (per CID)
VERIFIED
October 2026Official sources
FILE · GENERAL CONTRACTING x NEW MEXICO
Compliance Dossier
Public
File
October 2026
STATE AUTHORITYNew Mexico Regulation & Licensing Department — Construction Industries Division (CID)
STATUTE / CODENMSA 1978 §§ 60-13-3, 60-13-12, 60-13-16; 14.6.6.9(B) NMAC
SCOPEStatewide · New Mexico
RENEWALUp to 2 years per term (NMSA § 60-13-18)
CONTINUING ED.None for general building contractors (per CID)
LOCAL OFFICES3 counties on file
FILE GENERAL CONTRACTINGSCOPE STATEWIDE · NEW MEXICOTYPE VERIFIED RULE FILE
VERIFIED October 2026STATUS PUBLIC REFERENCE
What this file settlesThe New Mexico rules for general contracting contractors, verified against official sources.
LICENSE TRUTH
New Mexico requires a CID contractor license for general contracting — GB-2 Residential or GB-98 General Building — on any work beyond the $7,200-a-year handyman exemption.
STATE ↔ LOCAL
CID licenses contractors statewide under the Construction Industries Licensing Act; the license is the trade credential everywhere in New Mexico. Permits and inspections are issued by CID or, where a city or county runs its own building department, by that jurisdiction under codes adopted pursuant to NMSA § 60-13-44. A municipality may not require a licensed contractor to post an additional license bond (§ 60-13-51).
EVERY CLAIM SOURCED
Each requirement below carries its citation and official source. Facts we could not confirm are listed as pending — never asserted.
§ 01 · Permit Stack

How general contracting work is governed in New Mexico.

The state sets the license floor; the county or city permit office controls filing, inspections, and local rules wherever the job site sits.

STATE — THE LICENSE
CID (NMSA 60-13; 14.6 NMAC)
GB-2 / GB-98QUALIFYING PARTY + EXAMSBUSINESS & LAW
STATE — RESPONSIBILITY
CID (NMSA 60-13-49; 14.6.3 NMAC)
$10,000 LICENSE BONDWORKERS' COMPQUALIFYING PARTY
STATE / LOCAL — PERMITS
CID or the local building department
PERMITINSPECTIONS

Read it bottom-up.

CID licenses contractors statewide under the Construction Industries Licensing Act; the license is the trade credential everywhere in New Mexico. Permits and inspections are issued by CID or, where a city or county runs its own building department, by that jurisdiction under codes adopted pursuant to NMSA § 60-13-44. A municipality may not require a licensed contractor to post an additional license bond (§ 60-13-51).

The local offices section below names the exact permit desk for every New Mexico county on file.

Source · New Mexico Regulation & Licensing Department — Construction Industries Division (CID)Last verified · October 2026
§ 02 · Specs Ledger

Every requirement, with a number on it.

Each row names the issuing authority, cost, timeline, citation, and status behind the requirement — verified against the official source.

RequirementIssued byCostTimeCitationStatus
GB-2 / GB-98 Contractor LicenseIssued to the business entity, qualified by a certified qualifying party
CID (processed by PSI)
$36 application + $200 license fee per 2-year term
Up to 2-year term
NMSA 1978 § 60-13-12; 14.6.6.9(B) NMAC
REQUIRED
Qualifying Party CertificateGB-2: 2 years foreman-level; GB-98: 4 years foreman-level (2 commercial), within the last 10 years; trade exam plus Business & Law exam (or approved course)
CID / PSI
$36 QP application + PSI exam fees
Before licensing
NMSA 1978 § 60-13-16; 14.6.3.8(G) NMAC
REQUIRED
$10,000 License BondCorporate surety; pays only to cure code violations the licensee leaves uncorrected
Surety
Premium on a $10,000 bond
Entire license term
NMSA 1978 § 60-13-49; 14.6.3.8(C) NMAC
REQUIRED
Workers' Compensation CoverageCID requires coverage for all licensed entities
Carrier
By payroll
Before licensing
NMSA 1978 § 60-13-23; 14.6.3.8 NMAC
REQUIRED
Handyman ExemptionCasual, minor work up to $7,200 compensation a year, one project at a time, no advertising, annual CID declaration — never electrical, plumbing, or gas fitting
Statute
Annual declaration filed with CID
Annual
NMSA 1978 § 60-13-3(D)(14); 14.6.2.8 NMAC
OPTIONAL
Building PermitFrom CID, or from the city or county where it runs its own building department
CID / local building department
Valuation-based
Per project
14.5.2 NMAC; 14.5.5 NMAC
CONDITIONAL
Licensed Electrical & Mechanical SubsWork under the electrical or mechanical bureau must be done by a contractor licensed for it
CID licensees
Subcontract
Per project
NMSA 1978 § 60-13-12(B); 14.6.6.8(C) NMAC
REQUIRED
§ 03 · Year-One Cost

What it costs to start general contracting in New Mexico.

Published fees from the issuing authorities, as of October 2026. Local permit fees vary by project and jurisdiction — the basis is stated where a flat number does not exist.

Year-one ledger
New Mexico · General Contracting
Qualifying party applicationPaid to PSI with notarized experience affidavits$36
License applicationPaid to PSI with the license application$36
GB-2 or GB-98 license feePer classification, two-year term (14.5.5.8 NMAC)$200
Trade + Business & Law examsPaid to PSI; an approved B&L course may replace the B&L examPSI rate
$10,000 license bondCorporate suretyBond premium
Year-one floor$272 in PSI/CID fees + exams and bond premium
Excludes tools, vehicle purchase, payroll, and marketing.
NOTE
The $7,200 handyman line

Below $7,200 a year in casual, minor work — one project at a time, no advertising, annual CID declaration — no license is needed. Electrical, plumbing, and gas fitting are never exempt.

NOTE
Prime-contract rule

You may prime a project only if the major portion of the work by dollar amount falls in your classification; everything outside it must be subcontracted to a licensed entity (14.6.6.8(B)–(C) NMAC).

NOTE
No CE for general building

CID states that its General Building Bureau has no continuing education requirement for contractors.

§ 04 · Path to First Job

From day zero to first inspection.

A practical sequence for a new general contracting contractor in New Mexico. Actual agency processing times are noted in the ledger above.

1
STEP 1
Document experience in notarized affidavits
Qualifying party → PSI ($36)
2
STEP 2
Pass trade + Business & Law exams
PSI exam centers
3
STEP 3
Register with Taxation & Revenue; bind $10,000 bond + workers' comp
TRD / surety / carrier
4
STEP 4
Apply for GB-2 or GB-98
CID via PSI
5
STEP 5
Pull permits and call inspections
CID or local building department
§ 05 · Compliance Checklist

Check them off.

Each item names the issuing authority, cycle, and citation.

01
License before you bid
No bid may be submitted without a license covering the work — hold GB-2 or GB-98 or a classification whose scope includes it.
STATEESSENTIALNMSA 1978 § 60-13-12(A)–(B)
CIDIssuing authority
02
Put your license number on bids and permits
Omitting it from a written bid or permit application draws a $150 penalty fee.
STATEPAPERWORKNMSA 1978 § 60-13-19(A)–(B)
YouIssuing authority
03
Give the residential disclosure
Before residential work starts, a contract is signed, or money changes hands, disclose in writing on CID's form that the license and bond do not protect the consumer if you default.
STATECONSUMERNMSA 1978 § 60-13-19(C)
YouIssuing authority
04
Keep the $10,000 bond in force
A lapsed bond must be replaced within 40 days or the license is subject to revocation.
STATERESPONSIBILITYNMSA 1978 § 60-13-49(B)(5)
SuretyIssuing authority
05
Sub out electrical and mechanical
Your license does not authorize electrical, plumbing, or HVAC work — subcontract it to EE/ER or MM licensees.
SCOPESPLIT RULENMSA 1978 § 60-13-12(B)
Licensed tradesIssuing authority
§ 06 · Enforcement

What the law does about unlicensed general contracting work.

Statutory consequences with their citations — not estimates, not “commonly cited” guesses.

§
NMSA 1978 § 60-13-52(A), (C)Statute

Unlicensed contracting

Acting as a contractor without the license the CILA requires is a misdemeanor prosecuted in magistrate or metropolitan court; a second conviction doubles the penalty, and CID says a violator becomes eligible for licensure one year after conviction.

ConsequenceWork ≤$5,000: up to 90 days jail and/or $300–$500 fine · work >$5,000: up to 6 months jail and/or fine of 10% of the work's value
§
NMSA 1978 § 60-13-30Statute

No suit, no lien

A contractor may not sue to collect compensation for licensed work without alleging and proving it was licensed when the claim arose, and an unlicensed contractor has no right to file a mechanic's lien.

ConsequenceLoss of the right to sue for payment and to lien
§ 08 · New Mexico FAQ

Questions general contracting contractors ask about New Mexico.

Q01Do I need a general contractor license in New Mexico?+
Yes. Anyone who constructs, alters, repairs, or demolishes buildings for others needs a CID license classified for the work — GB-2 for residential up to four units or GB-98 for commercial and residential — unless the work fits the $7,200 handyman exemption (NMSA §§ 60-13-3, 60-13-12).
Q02What does it cost?+
CID lists a $36 qualifying-party application and a $36 license application, both paid to PSI; 14.5.5.8 NMAC sets the GB-2 or GB-98 license fee at $200 for two years. Add PSI exam fees and the premium on the required $10,000 bond.
Q03Is there a handyman exemption in New Mexico?+
Yes, but it is narrow. NMSA § 60-13-3(D)(14) excludes an individual doing casual, minor work on one project at a time up to $7,200 in compensation a year, who does not advertise as a contractor, whose work is not part of a larger operation, and who files an annual declaration with CID. It never covers electrical wiring, plumbing, or gas fitting.
Q04Can I take a course instead of the Business & Law exam?+
Yes. NMSA § 60-13-16(C) lets an applicant satisfy the business and law requirement with a certificate from a commission-approved course instead of the exam.
§ 09 · Sources

Primary authorities, not secondary summaries.

Every fact in this file was checked against these official sources on October 2026.

Pending verification: License application fee: CID's licensing page lists a $36 application fee paid to PSI, while 14.5.5.8 NMAC as posted by the State Records Center still lists $30; license-fee amounts here ($100 or $200 per two-year term) come from 14.5.5.8 NMAC and may have been changed by a later rule not retrieved · PSI trade and Business & Law exam fees (published only in PSI Candidate Information Bulletins, not on an official state page) · Whether CID requires general liability insurance for this classification — no such requirement was found in the CILA or 14.6.3 NMAC, which name the $10,000 bond and workers' compensation as the financial requirements · The renewal term and expiration date CID currently assigns (NMSA § 60-13-18(B) allows up to two years with staggered expirations; the current CID/PSI schedule was not retrieved) · Current form name and any fee for the annual handyman declaration CID requires under § 60-13-3(D)(14)(c)

General information, not legal advice. Always confirm requirements, deadlines, and forms with the issuing authority before filing or contracting.

These are the documents Iris tracks for you.

Store licenses, permits, policies, and renewal dates in one place.