New Mexico Bond, Insurance & Exam Logistics
Beyond the exams, a New Mexico contractor must post a license bond, cover workers, and follow the open-book exam rules. This chapter reviews the $10,000 bond, workers' compensation, and the format of the business and law exam.
The $10,000 license bond
New Mexico requires a licensed contractor to maintain a license bond, generally in the amount of $10,000, filed with the Construction Industries Division under the Construction Industries Licensing Act and NMAC Title 14, Chapter 6. The bond protects the public and the state if the contractor violates the licensing law. Keeping the bond current is a condition of holding the license.
Workers' compensation
Under New Mexico's Workers' Compensation Act, an employer that regularly employs three or more workers generally must carry workers' compensation coverage, and construction employers should confirm their obligation with the Workers' Compensation Administration. Because a growing crew can cross the threshold quickly, contractors track their headcount and secure coverage before they are required to have it.
The open-book Business and Law exam
The New Mexico Business and Law exam is open book, 50 questions over 130 minutes, with a 75% passing score (38 of 50). Candidates may bring the allowed references, which can include the NASCLA guide, but must remember that on any conflict the New Mexico code and Construction Industries Licensing Act control. Because the passing score is 75% rather than 70%, candidates should be comfortable locating New Mexico-specific licensing, lien, and tax rules quickly.