New Mexico licenses contractors by classification, and the classification is the legal scope of what you may contract for. Pick the wrong one and you are either paying for a license you do not need or doing work your license does not cover, which is a violation. Here is how the scheme works.
This is an independent guide, not affiliated with the New Mexico Construction Industries Division, the Regulation and Licensing Department, PSI, or NASCLA. Licensing details change, so verify current requirements against the official publications before you act.
The letter scheme
Classifications follow a two-letter code in NMAC 14.6.6.8(D):
- First letter: the trade. G is General Construction, E is Electrical, M is Mechanical (plumbing and HVAC).
- Second letter: the specialty area. A is asphalt, B is building, F is fixed works, S is specialties.
So GB-98 is a general building contractor, EE-98 is a full electrical contractor, MM-98 is a full mechanical contractor, and GA-98 covers asphalt work. The -98 suffix generally denotes the full classification; lower numbers denote limited scopes within it.
A license authorizes contracting only within the scope of its classification or classifications. Out-of-scope work is a CILA violation and grounds for discipline. This is not a technicality; it is one of the license discipline grounds in NMSA 60-13-23.
General construction (G)
- GA (asphalt, bitumen, concrete): GA-1 covers streets, roads, and highways; GA-2 covers maintenance and repair; GA-3 covers curbs, gutters, and culverts; GA-4 covers striping; GA-5 covers highway signs and guard rails. GA-98 covers all of GA-1 through GA-5. Experience: 4 years for GA-98, 2 years for the individual GA-1 through GA-5.
- GB-2 (residential building): covers residences and apartment houses of not more than four family units. Requires 2 years of foreman-level experience. This is the residential specialist license.
- GB-98 (general building): the full general building classification. One exam-relevant power: GB-98 may prime a mechanical, plumbing, or electrical project that includes GB-98 work regardless of the percentage of the work. That is an exception to the prime-bidding rule.
Electrical (E)
- EE-98: the full electrical classification, covering electrical wiring at 5,000 volts nominal or less.
- EL-1: distribution and transmission over 5,000 volts.
- ER-1: a residential electrical scope that may not contract for more than four dwelling units in any single building.
- ES-3: low-voltage special systems under 50 volts.
- EE-98 also includes the ES-1, ES-2, ES-3, ES-7, ES-10R, ES-10, and ER-1 scopes.
Voltage boundaries are classic exam material: 5,000 volts divides EE-98 from EL-1, 50 volts defines ES-3, and the four-dwelling-unit cap defines ER-1.
Mechanical (M)
- MM-98: the full mechanical classification.
- MM-1: control and control wiring limited to 24 volts; hot-water heating capped at 30 p.s.i. or 400,000 b.t.u./hour input.
- MM-2: may not install LP Gas systems.
The exam tests these limits as numbers: 24 volts, 30 p.s.i., 400,000 b.t.u./hour. They are worth memorizing cold.
The prime-bidding rule
A licensee may bid or contract as prime only if the major portion of the work, by dollar amount, is authorized by its classification. All out-of-scope work must be subcontracted to validly licensed contractors. The GB-98 exception above is the one carve-out the exam tests. Failing to show the license number on written bids and permit applications draws a $150 penalty.
How to pick
- Match the work you will actually do. Do not buy GB-98 if your work is all residential under four units; GB-2 fits.
- Check the voltage and unit limits. If your electrical work crosses 5,000 volts, EE-98 does not cover it. If your residential buildings exceed four units, GB-2 and ER-1 do not cover them.
- Mind the experience requirements. The 4-year and 2-year experience thresholds differ by classification; your qualifying party's experience must fit.
- Remember scope discipline. Once licensed, every bid must sit inside your classification. The prime-bidding rule is enforced.
The full licensing path walks through the rest of the process, and what to expect on the Business and Law exam covers the test you will take regardless of classification.
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