At a Glance: New Mexico Contractor License
| Item | Details |
|---|---|
| Licensing Board | New Mexico Regulation and Licensing Department — Construction Industries Division |
| License Types |
|
| License Threshold | All contractors must be licensed |
| Application Fee | $100–$400 |
| Exam Required | Yes |
| Exam Provider | PSI Exams |
| Exam Cost | $85–$130 |
| Experience Required | 2–4 years experience |
| Insurance Required | General Liability; Workers' Comp required |
| License Renewal | Annual; $100–$300 |
Step-by-Step: How to Get Your New Mexico Contractor License
- Choose license class based on project type
- Document experience with affidavit
- Pass NM Business & Law exam and trade exam
- Obtain insurance
- Apply to CID with fees
- License issued in 30–45 days
Exam Requirements
Provider: PSI Exams
Cost: $85–$130
Topics covered: NM Law & Business, Trade Knowledge
Most state contractor exams test two main areas: Business & Law (contracts, lien law, workers' comp, licensing regulations) and Trade Knowledge (construction practices, building codes, safety). Prepare for both sections — even experienced contractors struggle with the Business & Law portion without dedicated study.
Study Resources
- PSI Candidate Handbook (available on PSI website — free, covers exactly what's on the exam)
- ICC Study Guides for code-based exams
- Contractor's Business & Law Study Guide by Craftsman Book Company
- Online prep courses from Contractor Exam Prep and similar providers
Insurance & Bonding Requirements
General Liability; Workers' Comp required
Beyond what New Mexico requires, consider these coverage types for complete protection:
- General Liability: Protects against third-party bodily injury and property damage claims
- Workers' Compensation: Required if you have employees; protects against job-site injury claims
- Commercial Auto: Your personal auto policy won't cover your work truck
- Inland Marine (Tools & Equipment): Covers tool theft from job site or vehicle
Reciprocity
New Mexico has the following reciprocity agreements with other states:
No active reciprocity agreements.
Important: Reciprocity agreements change over time. Always contact the New Mexico licensing board directly to confirm current reciprocity status before assuming your out-of-state license qualifies for expedited licensure.
Important Notes for New Mexico
New Mexico requires licensing for all contractors. The CID enforces actively. Special requirements exist for solar and green building in some jurisdictions.
Frequently Asked Questions
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Do I need a contractor license in New Mexico?Yes. In New Mexico, contractors are required to be licensed for projects valued at All contractors must be licensed. The licensing is managed by the New Mexico Regulation and Licensing Department — Construction Industries Division. Operating without a license can result in fines and inability to enforce contracts.
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How much does a New Mexico contractor license cost?The application fee for a New Mexico contractor license is $100–$400. An exam fee of $85–$130 is also required for the PSI Exams exam. Renewal is Annual; $100–$300.
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Is an exam required for a New Mexico contractor license?Yes. New Mexico requires passing the PSI Exams exam (cost: $85–$130) covering NM Law & Business and Trade Knowledge. Passing the exam is a prerequisite before applying for your license.
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What insurance is required for a New Mexico contractor license?New Mexico requires the following insurance for contractor licensing: General Liability; Workers' Comp required. This is the minimum required — most contractors carry higher limits for additional protection on job sites.
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How long does it take to get a contractor license in New Mexico?Getting a New Mexico contractor license typically involves 6 steps: obtaining required experience (2–4 years experience), passing the exam, securing insurance, and submitting the application to the New Mexico Regulation and Licensing Department — Construction Industries Division. Processing times vary but most applications are decided within 4–8 weeks after submission.
Official Resources
- New Mexico Regulation and Licensing Department — Construction Industries Division — Official Website
- PSI Exams — Schedule Your Contractor Exam
- Contractor Insurance Guide
- Contractor Bonding Guide
- How to Start a Construction Business
Always verify requirements directly with the New Mexico Regulation and Licensing Department — Construction Industries Division. Requirements, fees, and exam procedures change frequently — this guide is updated periodically but may not reflect the most recent changes.