New Mexico Business and Law

Summary:

• Complete this convenient online Business & Law course (or pass the in person exam)
• Pass the in person Trade-Specific exam
• Submit an application to the Construction Industries Division

How to Get a Contractors License in NM

In New Mexico, any contracting businesses need to have a license through the New Mexico Regulation and Licensing Department (NMRLD). And while the business gets issued the license, that business needs to name a qualifying party (QP) and that individual will need to take some steps to satisfy the NMRLD’s requirements. 

If you want to work as a contractor, that means you’ll need to start your business, apply for the license with the NMRLD, and do some things yourself. That includes passing an exam and taking a business and law course. 

Let’s take a look at everything you need to do, both personally and on behalf of your business, to get properly licensed for contracting in New Mexico. 

#1: Determine your contractor license classification

First up, you need to figure out which classification you want to apply to your license. The classification you choose will come with specific experience requirements for your QP, so make sure you choose one for which you qualify. Here’s a quick overview of your options:

Classifications that require two years (4,000 hours) of experience:

• GB2: Residential building
• GS: All specialty classifications
• GF1: Airports
• GF2: Bridges
• GF3: Canals, reservoirs, irrigation systems
• GF4: Drainage or flood control systems
• GF5: Recreation areas
• GF6: Railroad and tunnel construction
• GF7: Tank and towers
• GF8: Transmission lines, tanks and substations (non-electrical)
• GF9: Utility lines (sewage, natural gas and underground telephone cables)
• GA1: Streets, roads and highways, including tunnels, parking lots, alleys, seal coat and surfacing
• GA2: Maintenance and repair
• GA3: Curbs, gutters, and culverts
• GA4: Striping
• GA5: Highway signs and guard rails

Classifications that require four years (8,000 hours) of experience:

• GB98: General building
• GA98: Asphalt, bitumen, and concrete construction
• GF98: Fixed works utilities

If you’re not sure which classification is right for your New Mexico contractor license, you can submit this Classification Determination Request. 

#2: Become a qualifying party

Once you choose your classification, you’re ready to submit your Application for a Qualifying Party Certificate. You’ll need to get it notarized, send in the $36 fee, and include a notarized Work Experience Affidavit. 

Within a few weeks, you should hear back from the state. Assuming you’ve completed the QP certificate correctly, they’ll notify you that you’re pre-approved to take the required exams and classes. 

#3: Take the required course and pass the required exam

Next up, you need to take the New Mexico Business & Law course that’s required for all contracting company qualifying parties. It’s a 16-hour course, but you can do it online. Alternatively, you can study for and take the business and law exam, but it costs $68.88 and the test itself is 130 minutes. If you don’t pass, you’ll have to do it again. Taking the online business and law course ensures you can knock this to-do out in one go.

Additionally, you need to take the relevant exam for your classification. To get info about the exam, check out the candidate bulletin from PSI, the company that proctors the exam for the NMRLD. 

To schedule your exam once you’re preapproved, you can head to PSI’s website. Choose “New Mexico” from the jurisdiction dropdown, then choose “NM Construction” from the “Select Account” menu. Finally, choose your classification from the last dropdown menu to pull up the PSI page on the relevant exam.  

#4: Register your business with the state

Next up, it’s time to establish your business with the proper state agencies. You’ll work with the Secretary of State to start your business. 

As part of the process to establish your business, you’ll need to get a tax registration certificate from the Tax and Revenue Department and get a $10,000 bond. 

#5: Submit the application for your business

Now, it’s finally time to submit your New Mexico Application for Contractor License. You’re going to need to attach a handful of things to your application, too. In addition to your completed, notarized application, make sure you include:

• The $36 application fee
• The relevant fee for the classification you want ($300 for GB02, GB98, GA98, GF98, EE98, MM98; $150 for all others)
• Your license bond
• Your tax registration certificate
• Your certificate from the Secretary of State and/or New Mexico Public Regulation Commission (NMPRC)
• A certificate of completion for your QP’s business and law course
• QP test scores for any relevant classification exams 

Getting your New Mexico contractors license requires a fair bit of work. But once you get through this process, you’ll be ready to legally take on projects throughout the state. And since the NMRLD offers license verification on their website, your future clients will be able to see that you’re properly sanctioned by the state, helping you win more business.