General Contractor License Requirements in New Mexico
| Licensing Authority | Regulation and Licensing Department, Construction Industries Division (CID) |
| License Type | GB-98 - General Building |
| Experience Required | GB-98: 4 years (8,000 hours) of foreman-level practical or related trade experience, with at least 2 years of commercial experience. GB-2: 2 years (4,000 hours) of foreman-level experience. |
| Exam Required | Yes — Business and Law Exam + GB-98 General Building Trade Exam |
| Bond Required | Yes — $10,000 |
| Insurance | General liability: recommended. Workers comp: required |
| Continuing Education | 16 hours every 3 years |
| Processing Time | 4-8 weeks |
Fee Breakdown
| Application Fee | $36 |
| Exam Fee | $250 |
| Initial License Fee | $300 |
| Est. Initial Total | $586 |
Related & additional fees
Separate or ongoing costs — not included in the estimate above.
| GB-2 license fee | $150 |
| GB-2 exam fee | $100 |
Renewal: $100 every 3 years
Exam Requirements
Business and Law Exam
GB-98 General Building Trade Exam
Exam provider: PSI
Recommended exam prep
Formal prep pays for itself against a $100+ retake. Many states examine contractors on two separate papers — the trade exam and a business and law exam — so we list the course covering both first, with trade-specific depth after.
Some links below are affiliate links. If you buy through them we may earn a commission at no extra cost to you.
Mometrix · SponsoredContractor License Online Study CourseFull online prep course covering the trade and business-and-law exams — video lessons, practice questions, and a study plan built for a first-try pass.See the course →
Mometrix · SponsoredContractor's Exam FlashcardsPortable flashcards for the high-frequency exam topics — a cheaper add-on for drilling terms and code references on the go.See the flashcards →Set up the business before you apply in New Mexico
Most states license the company as well as the person, so the application usually asks for an LLC or corporation and a registered agent in New Mexico. Northwest forms the entity and acts as your registered agent — a flat fee, no upsell funnel.
Some links below are affiliate links. If you buy through them we may earn a commission at no extra cost to you.
Form an LLC with Northwest→License Tiers
GB-2 - Residential General Building
2 years (4,000 hours) of foreman-level experience
Exam: Required
GB-98 - Commercial General Building
4 years (8,000 hours) of foreman-level experience, including 2 years commercial
Exam: Required
Local requirements on top of your New Mexico license
The CID general contractor license is the credential that lets you work anywhere in New Mexico. On top of it, most New Mexico cities and counties require a local business license (a tax registration) to operate, and a few add their own contractor registration or permit. These are in addition to your state license, not a replacement — always confirm the rules with the city or county where the job is.
You're licensed in New Mexico as a general contractor — the next 30 days
Most of the steps below are required before your first paid job; the order is the order the state and its counties will ask for them.
Some links below are affiliate links. If you buy through them we may earn a commission at no extra cost to you.
Form the business and get an EIN.
The Regulation and Licensing Department, Construction Industries Division issues the GB-98 - General Building; the business that invoices New Mexico customers is a separate decision. A sole proprietorship is the default, an LLC keeps business liability off your personal assets, and either needs an EIN before the first payroll. Settle it before the license number goes on an estimate.
Post the bond.
New Mexico requires a $10,000 surety bond. Contractor bond of $10,000 required before license issuance. How contractor bonds work→
Carry general liability insurance.
New Mexico does not set a general liability minimum for this trade, but most permits and commercial customers ask for proof of GL cover. Workers compensation coverage is required for all licensed entities in New Mexico. Contractor insurance requirements→
Register locally.
Most New Mexico cities and counties require a local business license (a tax registration) on top of the state credential, and a few add their own contractor registration or permit — confirm with the city or county where the job is.
Set up quoting, scheduling and invoicing before the first call.
Your first customers will ask for a written estimate and expect to pay by card on site. Most one-truck general contractor businesses run that on field-service software; Housecall Pro is the one we link because it is built for this size of company and this link carries 20% off your first 12 months. Start a free trial of Housecall Pro→
Keep the license.
Renewal is every 3 years at $100. Continuing education: 16 hours every 3 years.
Other licenses in New Mexico
- Electrician license in New Mexico
Statewide license required · $586 in initial government fees · CID
- Plumber license in New Mexico
Statewide license required · $401 in initial government fees · CID
- HVAC Technician license in New Mexico
Statewide license required · $401 in initial government fees · CID
- Roofing Contractor license in New Mexico
Statewide license required · $401 in initial government fees · CID
Frequently Asked Questions
Do I need a general contractor license in New Mexico?
Yes, New Mexico requires a statewide general contractor license through the Regulation and Licensing Department, Construction Industries Division.
How much does a general contractor license cost in New Mexico?
The estimated initial cost is $586, including application, exam, and license fees. A $10,000 surety bond is also required.
What experience do I need for a general contractor license in New Mexico?
GB-98: 4 years (8,000 hours) of foreman-level practical or related trade experience, with at least 2 years of commercial experience. GB-2: 2 years (4,000 hours) of foreman-level experience.
What exams are required for a general contractor license in New Mexico?
You must pass the Business and Law Exam and GB-98 General Building Trade Exam exams. Exams are administered by PSI.
Do I need a bond for a general contractor license in New Mexico?
Yes, a $10,000 surety bond is required. Contractor bond of $10,000 required before license issuance
How long does it take to get a general contractor license in New Mexico?
Processing time is typically 4-8 weeks after submitting a complete application.
Is continuing education required for general contractors in New Mexico?
Yes, 16 hours per every 3 years is required for license renewal.
Next steps
You know the requirements for general contractors in New Mexico— here's how to actually pass and apply.
Data last verified: 2026-04-02 | Source: CID