01
Licensing Requirements
The $7,200 exemption, the $10,000 license bond, classifications, qualifying parties, the 3-year renewal cycle, and discipline.
Contractor exam study guide
AvailableNew Mexico Business and Law Study Guide
New Mexico contractor business and law, organized for the open-book exam.
A 98-page independent study aid for the New Mexico Construction Industries Division Business and Law Examination, administered by PSI. It follows the official content outline across all 50 questions, with 150 practice questions and cited explanations. Content was verified against New Mexico primary sources in September 2026: NMSA 1978 Chapter 60 Article 13, the Construction Industries Division rules, and the PSI Candidate Information Bulletin (revised 4/3/2026). Because the exam is open book with the NASCLA Basic 14th Edition, NMSA Chapter 60 Article 13, and NMAC 14.6.3 as the allowed references, the guide includes a tabbing map and an open-book strategy built around finding answers fast under time pressure. Note: New Mexico law lets applicants satisfy the business-and-law requirement with an approved course instead of the exam; the guide says so plainly.
What is inside
Organized the way the exam tests it.
02
Estimating and Bidding
Bid procedures, the Little Miller Act $25,000 threshold with 100% performance and 100% payment bonds, and prompt-pay rules.
03
Business Organization and Financial Management
Business structures and liability, financial statements and ratios, and job costing.
04
Tax Laws
The 4.875% gross receipts tax, compensating tax, NTTC deductions, and construction-site sourcing.
05
Labor Laws
Workers' comp coverage regardless of employee count, the $2.55/$2.25 workers' comp fee, unemployment insurance, wage payment rules, and the $12.00 minimum wage.
06
Project Management and Lien Law
The 120/90-day lien tiers, the 15-day post-recording owner notice, the 2-year enforcement window, and the Stop Notice Act chain.
07
Contracts
Required contract elements, the door-to-door 3-day cancellation rule, the FTC $25/$130 rule, and limitation and repose periods.
08
Risk Management
Insurance types, bonds versus insurance, and the penalty ladder for unlicensed work.
09
Environmental and Safety
New Mexico OSHA state-plan duties, asbestos rules, lead-safe work, and stormwater requirements.
Fit check
Built for exam day, honest about limits.
A strong fit for
- Applicants preparing for the New Mexico Business and Law Examination
- Qualifying parties who need a refresher on New Mexico licensing and business rules
- Out-of-state contractors learning New Mexico-specific requirements
- Anyone who wants cited explanations, not just answer keys
Deliberately not included
- It is not affiliated with, endorsed by, or produced by the New Mexico Construction Industries Division, PSI, or NASCLA
- It does not include trade exam content for any classification
- It does not replace the official statutes, Division rules, PSI publications, or legal advice
- It does not guarantee a passing score
Delivery
Three steps to your PDF.
- 01
Pay securely
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- 02
Confirm access
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- 03
Download the PDF
Download the full study guide PDF. The link is single-use and expires shortly after it is issued.
Before purchase
Clear answers, up front.
Is this affiliated with the New Mexico Construction Industries Division or PSI?
No. This is an independent study aid. It is not affiliated with, endorsed by, or produced by the New Mexico Construction Industries Division, PSI, or NASCLA. Always verify current requirements against the PSI Candidate Information Bulletin and official sources before your exam.
Do I have to take the exam?
Not necessarily. New Mexico law (NMSA 60-13-16(C)) lets applicants satisfy the business-and-law requirement by completing an approved course instead of taking the PSI exam. If you are taking the exam, it is open book: the allowed references are the NASCLA Basic 14th Edition, NMSA Chapter 60 Article 13, and NMAC 14.6.3. This guide includes a tabbing map so you can find answers fast under time pressure.
How was the content verified?
Every factual claim was checked against New Mexico primary sources: NMSA 1978 Chapter 60 Article 13 (Construction Industries Licensing Act), the Construction Industries Division rules, and the PSI Candidate Information Bulletin (revised 4/3/2026). Content was verified in September 2026, and where a figure was uncertain, the guide says so instead of guessing.
Does it cover the trade exam for my classification?
No. This guide covers the Business and Law Examination only. Trade exams are classification-specific and are not included.
How do I receive the guide?
After checkout, you get a secure access email with a sign-in link. Confirm on the site and download the PDF. The download link is single-use and expires shortly after it is issued; if it expires, email support from your checkout address and we will reissue access.
What is the refund policy?
Because this is a digital download, refunds are limited to duplicate purchases or failed delivery. If your download does not work, email support and we will fix it or refund you.
Independence disclosure
Read this before you buy.
Independent study aid. Not affiliated with, endorsed by, or produced by the New Mexico Construction Industries Division, PSI, or NASCLA. The practice questions are original questions written in exam style, not real exam questions. Statutes and rules change; verify current requirements against the PSI Candidate Information Bulletin and official sources before your exam. This guide does not guarantee a passing score and is not legal advice.