New Mexico Contractor’s License: A Simple How-To Guide

Let’s face it: you’d make a great contractor. You’re handy, driven, and love working with people. So isn’t it time you get your license?

In New Mexico, the process can be a little tricky, and there’s a lot of information out there. That’s why I created this simple how-to guide that’ll get you through the process—quickly and easily.

Ready to get started?

Why Do I Need to Become Licensed Contractor in New Mexico?

If you do any construction, electrical, mechanical, plumbing work, or if you handle liquefied petroleum gas, you need to get a license. In New Mexico, the state is pretty cut and dry—it’s the law. They’re pretty serious about it too. If you get caught working without a license, the state can stop your project and file criminal charges. Yikes!

The good news is getting licensed can benefit both you and your business. Sure, it’s a requirement, but it also can:

• Help you get bigger projects that pay more. Licensed contractors make a nice salary, especially if they manage large construction sites or work with electrical and plumbing systems. There’s a lot of work for licensed contractors in New Mexico too.
• Make you appear credible and professional. Some jobs are tough to break into. Fortunately, a contractor isn’t one of them. Once you get your license, homeowners will see you as credible and trustworthy. They’ll know you have the training and experience to do quality work.
• Protect your business against the unexpected. Applying for a license is a good time to shop for business insurance, including general liability insurance and workers’ compensation (if you have employees). When you register your business, the state will ask you for proof of having workers’ compensation, so you might as well get a plan now.

Business insurance helps protect your employees and property. You don’t want to be unprepared—a sudden accident or loss could impact your livelihood.

Getting a license is a no-brainer, right? Now let’s cover how you can get one.

Getting a Contractor License in New Mexico: What You Need to Know

First step? Know where to go. The Construction Industries and Manufactured Housing Division (CID) within the New Mexico Regulation & Licensing Department handles licensing, but you can find all forms and information on the PSI website.

To apply, you’ll need:

• A completed classification determination request form.
• A completed and notarized qualifying party certificate.
• A notarized work experience verification form.
• A completed application form.
• Proof of a CID contractor license code bond.
• Proof of having workers’ compensation insurance.
• Proof of financial responsibility.
• A New Mexico tax ID number from the last year.
• An application fee payable to PSI (the amount varies based on which license classification you’re applying for).

If your business is a corporation, LLC, or partnership, you’ll also need to register it with the Secretary of State by calling 1-800-477-3632 or visiting 325 Don Gaspar, Suite 300 Santa Fe, New Mexico.

Get Business Insurance

Take a break from filling out forms to shop for business insurance. Becoming a licensed contractor is a big deal, especially if you own your own business and have employees. Make sure you protect your assets by getting general liability insurance and workers’ compensation.

In the construction industry, you never know what can happen. Injuries are commonplace and your equipment supports your livelihood. A good insurance plan will make sure your business is protected in the event of an accident, injury, or loss of property.

Apply to Take the License Exam

When you’re ready, search for an exam site and sign up for a test on the PSI website. To get your license, you’ll need to show records that you passed a business and law course, in addition to any trade-specific exams.

Submit Your Application

Get a big folder and organize your paperwork. Then send your application packet to:

PSI – New Mexico Construction Licensing Services
2820 Broadbent Pkwy NE, Suite E&F
Albuquerque, NM 87107
877-663-9267

And that’s it! You’ll hear back from the Construction Industries and Manufactured Housing Division (CID) next.

Start Advertising Your Contractor’s License Status

Already have your license? Nice job! It takes effort to get through the licensing process. Promote your license number on your website, business cards, contracts, and other marketing materials. Remember, this is a huge selling point for homeowners.

If you have a good insurance plan, promote it too. You’ll give homeowners peace of mind, especially if you’re new to the business.

Do you still need a plan? Get a quote today so you can get covered. It’s never too late to protect your business against the unexpected!

Don't forget you may need a business license before getting started, but so check out our guide here!

* Monthly payment calculations (i) do not include initial premium down payment and (ii) may vary by state, insurance provider, and nature of your business. Averages based on Q1 2020 data of 10% of our total policies sold.