New Mexico Contracting Law, Unlicensed Practice & Liens
New Mexico law bars an unlicensed contractor from suing to collect and sets classification-specific lien deadlines. This chapter covers the licensing requirement, NMSA §60-13-30, the lien timeline under NMSA §48-2-6, and the Gross Receipts Tax.
You must be licensed to contract, and unlicensed work cannot be sued on
The Construction Industries Licensing Act requires a license to engage in contracting in New Mexico, with only limited statutory exemptions. NMSA §60-13-30 provides that a contractor who was not a duly licensed contractor at the time of contracting cannot bring or maintain an action in any court to collect compensation for the work. As in many states, the loss of the right to sue for payment is the strongest civil consequence of unlicensed contracting and makes licensure a precondition to getting paid.
New Mexico's mechanics' and materialmen's lien deadlines (NMSA §48-2-6)
New Mexico's lien statute sets different filing windows by role. Under NMSA §48-2-6, an original (general) contractor must file the claim of lien within 120 days after completion of the work, while other claimants (subcontractors, laborers, suppliers) must file within 90 days after completion. After recording, the claimant generally must bring suit to enforce the lien within two years. Missing the deadline defeats the lien, so contractors track completion dates carefully.
Gross Receipts Tax instead of a sales tax
New Mexico does not impose a conventional sales tax; it levies a Gross Receipts Tax (GRT) under NMSA Chapter 7 on the receipts of businesses, including construction. Contractors register for a Combined Reporting System (CRS) / business tax account and report GRT on their gross receipts at the applicable state-plus-local rate for the job location. Understanding GRT — including how it applies to construction and to payments involving subcontractors — is part of doing business lawfully in New Mexico.