Becoming a Licensed New Mexico Contractor

Any one engaged in construction-related contracting in New Mexico must be licensed. The activities that are considered to be contracting in New Mexico are defined in the Construction Industries Licensing Act, NMSA 1978, Section 60-13-3.

New Mexico issues contracting licenses in approximately 100 different classifications. These classifications can be found in the New Mexico Administrative Code, Title 14, Chapter 6.

Unlicensed Contractors

Contracting without a license in New Mexico is against the law. If a contractor is working without a license, the Division may stop the construction project and file a criminal charge of unlicensed contracting in Metropolitan or Magistrate Court. The Division also has an administrative process that allows an unlicensed contractor to become properly licensed to do work in New Mexico.

What does an unlicensed contractor have to do to get licensed?

Section 60-13-14.D. of the Construction Industries Licensing Act (CILA) provides that an unlicensed contractor may be issued a contractor’s license provided all regular licensing requirements are met and four additional conditions are satisfied. These four conditions specify that the applicant must:

  • Pay a fee of 10% of the value of all non-licensed contracting work performed in New Mexico during the past year;
  • Pay a fee of 5% of the total bid amount for construction projects for which the applicant bid or offered a price, but was not awarded the job;
  • Resolve any outstanding consumer complaints; and
  • Show there has been no monetary damage to anyone as a result of his unlicensed contracting activity.

How does CID know if the unlicensed contractor meets the necessary conditions to become licensed?

An unlicensed contractor can meet the conditions outlined above by entering into a Stipulated Agreement with CID. In the Stipulated Agreement, the unlicensed contractor:

  • Admits to performing unlicensed contracting work;
  • Lists the jobs he has done, the value of that work, and all jobs and amounts bid;
  • Agrees to pay the appropriate administrative fee for the unlicensed contracting work;
  • Agrees to apply for a contractor’s license by a certain date; and
  • Attests there are no outstanding complaints against him and that he has caused no monetary damage to anyone.

What if the unlicensed contractor is not truthful when he enters into a Stipulated Agreement?

The Agreement would no longer be valid, and CID can file criminal charges of unlicensed contracting against the individual in court.

What does CID do if an unlicensed contractor does not want to get licensed or does not qualify for a license?

If a contractor cannot or does not want to become licensed, CID has two options:

  • If the contractor wants to settle claims against him without becoming licensed and if the claims arise from his first offense, he must satisfy any outstanding consumer complaints, show there has been no monetary damage to anyone, pay a 10% administrative fee on the value of all unlicensed contracting work done in New Mexico during the past year, pay a 5% administrative fee on the bid amount of all jobs bid, and pay a service fee of 10% of the total administrative fee.
  • Criminal charges of unlicensed contracting can be filed in Magistrate or Metro Court. Penalties for unlicensed contracting are set out by law (Section 60-13-52.A of the CILA). If the dollar value of the contracting work is $5,000 or less, the contractor may be sentenced to the county jail for 90 days or to the payment of a fine of $300 to $500, or both. If the dollar value of the contracting work is over $5,000, the contractor may be sentenced to the county jail for 6 months or to the payment of a fine of 10% of the dollar value of the contracting work, or both. In addition, the Court has the option of imposing a deferred sentence upon the unlicensed contractor if it is his first offense, on the condition that he obtain a contractor’s license. If the contractor wishes to become licensed, he must then meet the conditions set out above and enter into a Stipulated Agreement with CID.

Licensing and Examination Services Provided by PSI

For exam services or licensing, click here to go to PSI's website.

Contact PSI for questions about:

  • Becoming licensed in New Mexico
  • Acquiring an additional license or journeyman certification
  • License renewal Journeyman certification or renewal of certification
  • Change of licensee address
  • Change of name on a license
  • Change of business entity type
  • Canceling a license
  • Request for a license classification determination (e.g., proper license classification for a particular kind of contracting)

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