General Building Contractor (GB-98)

New Mexico General Building Contractor License (GB-98)

The New Mexico Construction Industries Division (CID) issues the GB-98 General Building Contractor license, the broadest building classification available. This license authorizes the holder to erect, alter, repair, or demolish both residential and commercial buildings and certain structures.

What This License Authorizes

GB-98 licensees may perform all work authorized under the GB-2 (residential) classification plus commercial construction. This includes office buildings, retail spaces, warehouses, multi-family housing over four units, and other commercial structures. The GB-98 also encompasses work covered by GF-5, GF-7, and all GS specialty classifications, as well as seal coating and striping of driveways and parking lots. It excludes work covered by electrical (EE), mechanical (MM), asphalt/concrete (GA), or fixed works (GF) classifications.

Experience and Examination Requirements

Applicants must designate a Qualifying Party (QP) who has a minimum of 4 years (8,000 hours) of foreman-level practical or related trade experience, of which at least 2 years must be commercial construction experience, within the 10 years preceding the application. The QP must pass both a trade-specific examination and a Business and Law examination administered by PSI.

Bond and Insurance Requirements

• Surety Bond: $10,000 contractor license bond required, filed with CID
• Workers' Compensation Insurance: Required for all licensed entities (corporations and LLCs must carry workers' comp even with zero employees; sole proprietors with no employees besides the owner are exempt)
• General Liability Insurance: Not required by the state, but recommended

Fees

• Application Fee: $30 (non-refundable)
• License Fee: $300 for 3 years ($100 per year)
• Exam Fee: $36 per exam (paid to PSI)

Renewal Process

• Renewal Period: Every 3 years
• Renewal Fee: $300 ($100 per year)
• Late Penalty: $1 per day for the first 30 days past the grace period; after 30 days late, a fee equal to one year's license fee ($200)
• License Cancellation: Licenses not renewed within 90 days of expiration are cancelled
• No Continuing Education Required

Consequences of Operating Without a License

Operating without a valid CID license is a misdemeanor under NMSA 60-13-52. For work valued at $5,000 or less, penalties include up to 90 days in county jail or a fine of $300 to $500, or both. For work over $5,000, penalties include up to 6 months in jail or a fine of 10% of the contract value, or both. Repeat offenders face double penalties.

*Disclaimer: This information is provided for general reference only and does not constitute legal advice. Always verify current requirements directly with the New Mexico Construction Industries Division.*