New Mexico Contractor License Steps

Obtaining a contractor license in New Mexico is not a lengthy process. Most of the process revolves around the qualifying party and getting them certified.

In this short article, you'll learn:

• A brief overview of the contractor license classifications
• The experience requirements for the qualifying party
• The examination requirements for the qualifying party
• The rules for a qualifying party
• How to satisfy the financial responsibility requirement
• Plus a quick overview of the journeyman requirements

New Mexico Contractor License Classifications

There are numerous classifications available. Here are the codes and names for each classification.

You can also submit a classification determination request form if you want to ensure you're applying for the correct classification.

General Construction Classifications

Asphalt, Bitumen, and Concrete Construction

• GA-1 | Streets, roads, highways including tunnels, parking lots, alleys, and surfacing
• GA-2 | Maintenance and repair
• GA-3 | Curbs, gutters, and driveway culverts
• GA-4 | Striping
• GA-5 | Highway signs and guard rails
• GA-98 | Asphalt, bitumen, and concrete (Requires licensure of the entire category and includes all work)

Residential and Commercial

• GB-2 | Residential
• GB-98 | General building (residential and commercial)

Fixed Works

• GF-1 | Airports
• GF-2 | Bridges
• GF-3 | Canals, reservoirs, irrigation systems
• GF-4 | Drainage or flood control systems
• GF-5 | Recreation areas
• GF-6 | Railroad and tunnel construction
• GF-7 | Tanks and towers
• GF-8 | Transmission lines, tanks, and substations (non-electrical)
• GF-9 | Utility lines and systems
• GF-98 | Construct, alter, or repair fixed works facilities

Specialty Classifications

• GS-1 | Acoustical insulation and other insulation
• GS-2 | Awnings and canopies
• GS-4 | Concrete, cement, walkways and driveways
• GS-5 | Demolition
• GS-7 | Drywall installation and texture
• GS-8 | Earthmoving, excavating, and ditching
• GS-9 | Elevators, escalators, and related machinery (non-electrical)
• GS-13 | Framing
• GS-14 | Windows, doors, and skylights
• GS-15 | Caissons, piers, and pile driving
• GS-16 | Masonry
• GS-21 | Roofing
• GS-23 | Sign construction (non-electrical)
• GS-24 | Structural steel erection
• GS-25 | Swimming pools (non-mechanical/electrical)
• GS-30 | Plastering, stucco, and lathing
• GS-31 | Siding
• GS-32 | Miscellaneous sheet metal
• GS-34 | Concrete coring, drilling, and slab sawing
• GS-29 | Sub-specialties determined on a case by case basis

Electrical Classifications

Residential and commercial

• EE-98 | Residential and commercial electrical wiring under 5,000 volts
• ER-1 | Residential electrical wiring
• EL-1 | Electrical distribution and transmission systems over 5,000 volts

Specialty Licenses

• ES-1 | Electrical signs and outline lighting
• ES-2 | Cathodic protection and lighting protection systems
• ES-3 | Low voltage special systems under 50 volts
• ES-7 | Telephone communication systems
• ES-10R | Residential water well pump installer
• ES-10 | Water well pump installer

Mechanical and Plumbing Classifications

Residential and Commercial

• MM-1 | Plumbing
• MM-2 | Natural gas fitting
• MM-3 | Heating, ventilation, and HVAC
• MM-4 | Heating, cooling and process piping
• MM-98 | Mechanical (covers all work in the category)

Specialty Classifications

• MS-3 | Septic tanks and sewer
• MS-6 | Lawn sprinklers
• MS-12 | Fire protection sprinkler systems
• MS-14 | Dry chemical fire protection

Determine Your Business Structure

You only need to specify your business or corporate structure on the application.

However, there are additional requirements depending on your specific structure, these include:

• All structures must submit their tax registration certificate form the Tax and Revenue Department
• LLC and Corporations must include a certificate from the New Mexico Public Regulation Commission
• Limited Liability Partnerships or Limited Partnerships must include a certificate from the Secretary of State

Business Ownership And Brief Company History

All ownership including managing partners, officers, managing members must be included on the application with full name, address, and social security number information.

The business history is short section outlining any history with past:

• Unpaid judgements
• Working outside the scope of a license classification or performing work without a license
• Outstanding or unpaid fees
• Unresolved complaints
• Licensure with other states

For anything you check "yes", you can provide the details around the situation or in the case of being licensed in other states, proof of those licenses.

Identify Your Qualifying Party

This is where the majority of the application process will be spent.

The qualifying party is the individual who is going to:

• Satisfy all the experience requirements
• Pass all the required examinations
• And once licensed, manage the project work for the company

The individual who will serve as the qualifying party must be an:

• Employee
• Supervisor
• Foreman
• Another licensed contractor

Finally, it's good to know:

• A current qualifying party can leave one company and license to move to another
• A licensed sole proprietor can cancel their active license and become a qualifying party for a company

New Mexico Qualifying Party Experience Requirements

;All experience must be accrued from within the last 10 years.

2 Years (4,000 hours)

• Residential building
• Building specialties (GS-1 through GS-34)
• Asphalt, Bitumen, & Concrete (GS-1 through GS-34)
• Fixed works (GA-1 through GA-5)
• Residential wiring
• Electrical specialties (ES-1 through ES-10)
• Mechanical specialties (MS-3 and MS-6)

4 Years (8,000 hours)

• General building
• Asphalt, Bitumen, Concrete (GA-98)
• Fixed works (GF-98)
• Electrical Residential and Commercial (EE-98)
• Electrical Distribution Systems (EL-1)
• Mechanical (MM-98)
• Plumbing and Mechanical Work (MM-1 through MM-4)
• Mechanical Specialties (MS-12 and MS-14)

To prove experience the qualifying parties previous employers must submit an affidavit attesting to the hours worked. If experience was from an out of state contractor, the employing contractor must submit a copy of their active license with the affidavit.

And all work only counts to the total if it was under the employment of an actively licensed contractor in the trade or classification that is currently being sought.

Finally, if the qualifying party is going to qualify for two or more licenses, they must have a 30% or great common ownership in all licenses and a Certificate of Common Ownership Form must be submitted.

New Mexico Qualifying Party Examination Requirements

Again, New Mexico is unique because PSI manages the entire license process as well as most of the examination process.

Before the qualifying party can sit for the relevant examination, PSI must have their experience approved and eligibility cleared.

The qualifying party is responsible for examinations for all relevant trade classifications.

They must also choose between:

• Passing the New Mexico Business and Law exam
• Or taking an approved Business and Law course

The qualifying party has 6 months from their examination approval to meet these requirements.

Finally if the qualifying party is getting licensed for one or both of these licenses, they can use a passing NASCLA exam.

• GB-98 | General building (residential and commercial)
• EE-98 | Residential and commercial electrical wiring under 5,000 volts

NASCLA is the National Association of State Contractors Licensing Agencies. This is a standardized examination company that most states accept for a select number of their contractor classifications.

Contractors who have qualifying and passing NASCLA exam scores can use the score to satisfy the exam requirements for multiple states.

Insurance Requirements

Financial Responsibility

The New Mexico Regulation and Licensing Department requires, what they call, financial responsibility. This means all applicants must purchase a surety bond or contractor license bond before submitting their application.

What is a Contractor Surety Bond?

A surety bond is legal contract that acts as a guarantee that you will follow through on all of your contractual obligations to:

• The customers that hire you
• The state of New Mexico, ensuring you follow the rules, regulations, and law as a licensed contractor

How Does a Contractor Surety Bond Work?

After you purchase your surety bond, and there is a unique form just for New Mexico contractor license bonds, you are considered a bonded contractor.

It's unfortunate but every year there are licensed contractors who purposefully harm their customers to make more money or break the law to perform work without being properly licensed.

If a contractor is found guilty of harming a customer or breaking the law, a claim can be made against the bond for financial recourse, but only up to the amount of the bond.

New Mexico contractors are required to purchase a $10,000 contractor bond.

The great news is you can purchase your bond today and instantly download it for only $100. This is one payment of $100 for a 3 year period or bond term to match your license term.

Most states require a much larger bond and credit checks to get pricing. You can purchase your surety bond immediately making checking off the bonding requirement easy.

Or click here and read more about the New Mexico contractor license surety bond.

Workers Compensation

All licensed business are required to purchase workers compensation insurance.

Just to recap, this is an insurance policy that protects your employees in the event of an on the job injury that prevents them from working.

New Mexico does not outline any minimum requirement, only that you have coverage. So the amount of coverage you choose is up to you and your business size.

If you're a sole proprietor, you can get this requirement waived.

New Mexico Contractor Application Process Overview

Here is an overview of steps to get licensed:

• $30 application fee
• $6 fee for each classification your applying for
• Certificates based on your business structure
• Tax registration certificate from Tax and Revenue Department
• Surety bond (financial responsibility) requirement
• Identify the qualifying party
• Secure affidavits for proof of experience
• Pass the required trade exams and Business and Law exam or course
• Handle the workers compensation insurance requirement
• Submit your package to PSI for approval

When you need to purchase your contractor bond, I hope you purchase with us where you can:

• Instantly purchase your bond for $250
• Download it immediately so you can submit it
• And it's good for a three year term

If you have any questions about the bond requirement, please call a bond specialist at 1-800-608-9950.