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.
State-specific details
State exam facts
- State regulator
- New Mexico Construction Industries Division (CID), Regulation and Licensing Department (RLD)
- Passing score
- 75%
- Scored questions
- 50
- Time limit
- 130 minutes
Does New Mexico require a state contractor license?
Yes. The Construction Industries Division (CID) of the Regulation and Licensing Department (RLD) licenses contractors under the Construction Industries Licensing Act (NMSA Chapter 60, Article 13), including the Qualifying Party requirement and the GB-98 and GB-2 general building classifications.
What is on the New Mexico contractor Business and Law exam?
The New Mexico Business and Law exam is 50 questions, 130 minutes, open book, and requires 75% to pass.
Can an unlicensed New Mexico contractor collect payment?
No. NMSA §60-13-30 bars an unlicensed contractor from suing to collect. New Mexico also imposes a Gross Receipts Tax (NMSA Chapter 7) in place of a sales tax, and requires a $10,000 license bond.
Sources: https://www.rld.nm.gov/construction/