- Small casual jobs under the handyman rule: one project at a time totaling no more than $7,200 a year, with an annual declaration filed with CID.
- GB-98: four years at foreman level, at least two of them commercial. GB-2: two years at foreman level. Most GS specialties: two years.
- Plan for a trade exam and a business and law exam.
- A $10,000 code compliance bond from a surety authorized in New Mexico, covering the full license period.
- Every three years. A license runs three years from the date it is issued.
Do you need a state license in New Mexico?
New Mexico licenses general contractor work at the state level through the New Mexico Regulation and Licensing Department, Construction Industries Division. Below is what the board asks for, in the order you will run into it.
Small casual jobs under the handyman rule: one project at a time totaling no more than $7,200 a year, with an annual declaration filed with CID.
CID takes permit and inspection requests online.
New Mexico license types for general contractor work
New Mexico splits the work into 3 licenses. Pick the one that matches the jobs you take, since working outside its scope is the same as working without one.
| License | What it covers |
|---|---|
| GB-98 | Build, alter, repair or demolish residential and commercial buildings, including GB-2 and GS specialty work. Excludes electrical, mechanical and some other specialty classes |
| GB-2 | Homes and apartment buildings of four units or fewer, plus related residential specialty work |
| GS specialties | Single trades such as GS-4 concrete, GS-7 drywall, GS-13 framing, GS-16 masonry, GS-21 roofing |
Steps to get licensed in New Mexico
- Pick the classification you need (GB-2 for homes, GB-98 for commercial too) and document your foreman level experience.
- Qualify for the trade exam and complete the Business and Law course if it applies.
- Pass the trade exam with 75 percent or better.
- Clear your business name with PSI, then register with Taxation and Revenue and the Secretary of State.
- Buy the $10,000 bond and arrange workers compensation if you have employees.
- Submit the notarized license application and fees to PSI.
- Renew every three years.
Experience and other requirements
Experience. GB-98: four years at foreman level, at least two of them commercial. GB-2: two years at foreman level. Most GS specialties: two years.
The license to apply for. GB-98 General Building (or GB-2 Residential).
New Mexico general contractor exams
Trade exam. Yes. A trade exam for the classification, given by CID or its designee. Passing score is 75 percent. The trade exam can be waived for someone who passed a NASCLA accredited general construction exam.
Business and law exam. Yes, where it applies. The license application asks for a certificate showing passing grades for the Business and Law course when your qualifying party is licensed for the first time.
What it costs in New Mexico
The board lists 3 fees along the way. These are the state's own numbers. Insurance, any bond, exam prep and your business registration come on top.
| Fee | Amount |
|---|---|
| Application and certificate fee | $36 |
| GB-2 or GB-98 classification fee | $300 |
| Other single classification fee (for example a GS specialty) | $150 |
Insurance and bond
Insurance. Workers compensation insurance is required of all licensees. A sole owner with no employees may be exempt.
Bond. A $10,000 code compliance bond from a surety authorized in New Mexico, covering the full license period.
Renewal and licenses from other states
Renewal. Every three years. A license runs three years from the date it is issued.
Reciprocity. The trade exam can be waived for a qualifying party who passed a NASCLA accredited general construction exam. Check with the board for other agreements.
Good to know in New Mexico
- Every license must be qualified by a qualifying party who holds the certificate for the classification.
- Get PSI to approve your business name before registering it with the Secretary of State or getting a New Mexico tax ID.
- Contractors working on manufactured homes also register with the Manufactured Housing Division.
After you are licensed
The license lets you take the work. Getting the work is the next job.
- Register the business. If you work under a name other than your own, register it where your state asks (often the Secretary of State, sometimes the county), and keep the name the same on your license, your truck and your invoices.
- Claim your Google Business Profile. It is the listing people see when they search for a contractor near them. Fill in your service area, hours and real photos of your work.
- Put up a website that shows the license. Customers look for it before they call. Koira builds a contractor website for you and keeps it current.
- See where you stand. The free Koira report checks how your business shows up in search and on maps against shops near you.
Where this comes from
Every fact on this page comes from the New Mexico Regulation and Licensing Department, Construction Industries Division and the official pages below, checked October 8, 2026. Fees and rules change, so confirm with the board before you file.