A corporation's only stockholder already holds a qualifying party certificate. Does the corporation need its own license?14.6.3.8(B) NMAC, New Mexico Administrative Code (State Records Center and Archives)
A license suspended for failure to renew is canceled unless it is renewed within what period?NMSA 1978, § 60-13-18(G) (unannotated statutes, NMOneSource.com)
A licensee changes its business name. When is the change effective?14.6.3.8(J) NMAC, New Mexico Administrative Code (State Records Center and Archives)
A licensee does not apply for renewal by the last working day before the license expires. What happens?NMSA 1978, § 60-13-18(F) (unannotated statutes, NMOneSource.com)
A proposed license name is nearly the same as a name on an existing license. What must the division do?NMSA 1978, § 60-13-13.2 (unannotated statutes, NMOneSource.com)
After a sole proprietor dies, how long may work in progress continue if CID receives written notice in time?14.6.3.8(K) NMAC, New Mexico Administrative Code (State Records Center and Archives)
An applicant contracted without a license in the past year. What additional fee may the director require before licensing it?NMSA 1978, § 60-13-14(D) (unannotated statutes, NMOneSource.com)
Show all 93 questions (86 more)
Licensing requirements, continued
An application for a license is filed but its requirements are not all met. When does it expire?14.6.3.8(D) NMAC, New Mexico Administrative Code (State Records Center and Archives)
Does the Act's definition of "contractor" reach subcontractors?NMSA 1978, § 60-13-3(B) (unannotated statutes, NMOneSource.com)
The handyman exemption covers casual, minor work up to what compensation a year?NMSA 1978, § 60-13-3(D) (unannotated statutes, NMOneSource.com)
How far ahead of expiration must the director notify a licensee that the license is about to expire?NMSA 1978, § 60-13-18(E) (unannotated statutes, NMOneSource.com)
How much trade experience does Section 60-13-14 ask of a license applicant?NMSA 1978, § 60-13-14(B) (unannotated statutes, NMOneSource.com)
May a contractor's license be transferred to a buyer of the business?NMSA 1978, § 60-13-18(A) (unannotated statutes, NMOneSource.com)
Two licensed contractors want to submit a joint bid. What does the rule require?14.6.3.8(B) NMAC, New Mexico Administrative Code (State Records Center and Archives)
What does it cost to renew a suspended license in the first thirty days after it expired?NMSA 1978, § 60-13-18(G) (unannotated statutes, NMOneSource.com)
What happens to a sole proprietor's license when the proprietor dies?14.6.3.8(B) NMAC, New Mexico Administrative Code (State Records Center and Archives)
What must an individual who relies on the handyman exemption file with the division?NMSA 1978, § 60-13-3(D) (unannotated statutes, NMOneSource.com)
When does a contractor's license expire, unless the division sets another period?NMSA 1978, § 60-13-18(B) (unannotated statutes, NMOneSource.com)
Where a rule requires continuing education for renewal, how many hours must the applicant show?NMSA 1978, § 60-13-18(D) (unannotated statutes, NMOneSource.com)
Which agency issues contractor licenses under the Construction Industries Licensing Act?NMSA 1978, § 60-13-12(A) (unannotated statutes, NMOneSource.com)
Which of these persons is not a "contractor" under the Act?NMSA 1978, § 60-13-3(D) (unannotated statutes, NMOneSource.com)
Which work is outside the handyman exemption whatever its price?NMSA 1978, § 60-13-3(D) (unannotated statutes, NMOneSource.com)
With which department must a license applicant prove it is registered?NMSA 1978, § 60-13-14(B) (unannotated statutes, NMOneSource.com)
Within how many days must a licensee report a change of address in writing?14.6.3.8(A) NMAC, New Mexico Administrative Code (State Records Center and Archives)
Qualifying parties and examinations 15
A new qualifying party certificate is never attached to a license. When does it expire?14.6.3.8(K) NMAC, New Mexico Administrative Code (State Records Center and Archives)
A qualifying party and a licensee part ways. Within how many days must they notify the division?NMSA 1978, § 60-13-25 (unannotated statutes, NMOneSource.com)
A qualifying party's certificate is revoked by the commission. How long before he may reapply?NMSA 1978, § 60-13-16(F) (unannotated statutes, NMOneSource.com)
A temporary certificate of qualification is issued without examination. Within how long must its holder pass the regular examination?NMSA 1978, § 60-13-16(D) (unannotated statutes, NMOneSource.com)
After its qualifying party leaves, how long is a license suspended before it is canceled for want of a new one?NMSA 1978, § 60-13-25 (unannotated statutes, NMOneSource.com)
An applicant is found to have cheated on an examination. For how long is the applicant barred from CID examinations?14.6.3.8(G) NMAC, New Mexico Administrative Code (State Records Center and Archives)
How does the rule count accredited technical training toward the work experience requirement?14.6.3.8(G) NMAC, New Mexico Administrative Code (State Records Center and Archives)
How often may an applicant repeat a failed qualifying examination?14.6.3.8(G) NMAC, New Mexico Administrative Code (State Records Center and Archives)
In which languages must the division provide its examinations?NMSA 1978, § 60-13-16(B) (unannotated statutes, NMOneSource.com)
What is a passing score on a qualifying party examination?14.6.3.8(G) NMAC, New Mexico Administrative Code (State Records Center and Archives)
What is the youngest age at which an individual may be issued a qualifying party certificate?14.6.3.8(E) NMAC, New Mexico Administrative Code (State Records Center and Archives)
What may an applicant offer in place of the examination on business and construction industries law?NMSA 1978, § 60-13-16(C) (unannotated statutes, NMOneSource.com)
When may one individual qualify more than one licensed entity, other than a joint venture?14.6.3.8(E) NMAC, New Mexico Administrative Code (State Records Center and Archives)
Which subjects does Section 60-13-16 name for the qualifying party examination?NMSA 1978, § 60-13-16(B) (unannotated statutes, NMOneSource.com)
Who may receive a temporary certificate of qualification when a qualifying party's employment ends without fault of the licensee?NMSA 1978, § 60-13-16(D) (unannotated statutes, NMOneSource.com)
Bids, permits and the license bond 13
A license bond is canceled. By when must the licensee give proof of a new bond before the license is subject to revocation?NMSA 1978, § 60-13-49(B) (unannotated statutes, NMOneSource.com)
A licensed contractor's job includes a little work in another trade classification. When may the contractor bid the whole job?NMSA 1978, § 60-13-12(B) (unannotated statutes, NMOneSource.com)
Before residential work begins, what must the contractor disclose to the owner in writing?NMSA 1978, § 60-13-19(C) (unannotated statutes, NMOneSource.com)
For what may payments from the contractor's license bond be used?NMSA 1978, § 60-13-49(B) (unannotated statutes, NMOneSource.com)
How does the Act define a "bid"?NMSA 1978, § 60-13-2(K) (unannotated statutes, NMOneSource.com)
How much written notice must a bond carrier give before it cancels a license bond?NMSA 1978, § 60-13-49(B) (unannotated statutes, NMOneSource.com)
May a municipality require a licensed contractor to post an additional license bond as proof of responsibility?NMSA 1978, § 60-13-51 (unannotated statutes, NMOneSource.com)
On which projects may a contractor bid before applying to the division for a license?NMSA 1978, § 60-13-12(C) (unannotated statutes, NMOneSource.com)
What fee may the division assess a contractor who fails to make the residential disclosure?NMSA 1978, § 60-13-19(C) (unannotated statutes, NMOneSource.com)
What penalty fee does the division assess a contractor who leaves the license number off a written bid?NMSA 1978, § 60-13-19(B) (unannotated statutes, NMOneSource.com)
What proof of responsibility must an applicant for a contractor's license furnish?NMSA 1978, § 60-13-49(B) (unannotated statutes, NMOneSource.com)
Where must a building permit or notice of permit be kept?NMSA 1978, § 60-13-59 (unannotated statutes, NMOneSource.com)
Within what time must a claim be made against the license bond?NMSA 1978, § 60-13-49(B) (unannotated statutes, NMOneSource.com)
Lien law 11
A lien claimant gives the Section 48-2-2.1 notice late. What work does the lien then cover?NMSA 1978, § 48-2-2.1(E) (unannotated statutes, NMOneSource.com)
A subcontractor wants to claim a lien. Within how many days after completion of the building or improvement must the claim be filed?NMSA 1978, § 48-2-6(A) (unannotated statutes, NMOneSource.com)
A supplier to a subcontractor claims a lien of more than $5,000 on a commercial project. How soon after first furnishing materials must it give written notice of its right to claim a lien?NMSA 1978, § 48-2-2.1(B) (unannotated statutes, NMOneSource.com)
After filing a claim of lien with the county clerk, how soon must the claimant send a copy to the owner?NMSA 1978, § 48-2-6(B) (unannotated statutes, NMOneSource.com)
An owner deposits security with the district court to cancel a lien. To what does the claimant's lien then attach?NMSA 1978, § 48-2-9(C) (unannotated statutes, NMOneSource.com)
An owner learns that a tenant is having work done on the land. How soon must the owner post a notice of nonresponsibility to keep the land free of the lien?NMSA 1978, § 48-2-11 (unannotated statutes, NMOneSource.com)
For how long does a filed claim of lien remain valid if no proceeding is begun to enforce it?NMSA 1978, § 48-2-10 (unannotated statutes, NMOneSource.com)
In a dispute arising out of a lien action, who may recover reasonable attorney fees and costs?NMSA 1978, § 48-2-14 (unannotated statutes, NMOneSource.com)
What lien right does a contractor operating without a required license have?NMSA 1978, § 60-13-30(B) (unannotated statutes, NMOneSource.com)
Which lien claims are free of the written notice rule of Section 48-2-2.1?NMSA 1978, § 48-2-2.1(A) (unannotated statutes, NMOneSource.com)
Within how many days after completing its contract must an original contractor file a claim of lien?NMSA 1978, § 48-2-6(A) (unannotated statutes, NMOneSource.com)
Contracts and prompt payment 9
A contractor is paid by the owner. Within how many days must it pay its subcontractors and suppliers for their work?NMSA 1978, § 57-28-5(C) (unannotated statutes, NMOneSource.com)
A contractor sues to collect for work that needed a license. What must it allege and prove?NMSA 1978, § 60-13-30(A) (unannotated statutes, NMOneSource.com)
A local public body pays for a project partly with grant money. How long may its contract allow for payment if the extended period is clearly stated?NMSA 1978, § 57-28-5(B) (unannotated statutes, NMOneSource.com)
An owner receives an invoice that is not properly completed. Within how many days must the owner say what is wrong with it?NMSA 1978, § 57-28-5(A) (unannotated statutes, NMOneSource.com)
In an action to enforce the Prompt Payment Act, what may the court award besides the amount owed?NMSA 1978, § 57-28-11 (unannotated statutes, NMOneSource.com)
Under the Prompt Payment Act, within how many days after receiving an undisputed request for payment must an owner pay?NMSA 1978, § 57-28-5(A) (unannotated statutes, NMOneSource.com)
What does the Prompt Payment Act say about holding back part of a payment owed for work performed?NMSA 1978, § 57-28-5(E) (unannotated statutes, NMOneSource.com)
What interest does an owner owe on an undisputed amount it pays late?NMSA 1978, § 57-28-5(A) (unannotated statutes, NMOneSource.com)
When is final payment due once completion has been certified and the releases and proof of completion are presented?NMSA 1978, § 57-28-8 (unannotated statutes, NMOneSource.com)
Labor laws and workers' compensation 9
A contractor willfully reports an employee to a state agency as an independent contractor. What is the penalty?NMSA 1978, § 60-13-3.1(C) (unannotated statutes, NMOneSource.com)
A licensed contractor has one employee. Does the Workers' Compensation Act apply to it?NMSA 1978, § 52-1-6(A) (unannotated statutes, NMOneSource.com)
An employee without a contract for a definite period quits. When are the wages due?NMSA 1978, § 50-4-5 (unannotated statutes, NMOneSource.com)
An employer discharges an employee whose unpaid wages are a fixed and definite amount. By when must they be paid?NMSA 1978, § 50-4-4(A) (unannotated statutes, NMOneSource.com)
At what rate must hours worked over forty in a week of seven days be paid?NMSA 1978, § 50-4-22(D) (unannotated statutes, NMOneSource.com)
How far apart may an employer's regular pay days be?NMSA 1978, § 50-4-2(A) (unannotated statutes, NMOneSource.com)
How many of the listed circumstances must exist before a person is "engaged in an independently established business"?NMSA 1978, § 60-13-3.1(A) (unannotated statutes, NMOneSource.com)
How must a contractor treat a person who provides labor for pay, unless the statute's independent contractor standards are met?NMSA 1978, § 60-13-3.1(A) (unannotated statutes, NMOneSource.com)
Outside the licensed construction trades, the Workers' Compensation Act applies to employers of how many workers?NMSA 1978, § 52-1-6(A) (unannotated statutes, NMOneSource.com)
Penalties and discipline 12
A licensee does business under a name that is not the one on its license. What does Section 60-13-23 make of this?NMSA 1978, § 60-13-23 (unannotated statutes, NMOneSource.com)
A licensee with an earlier suspension is assessed an administrative penalty. How is the amount set?NMSA 1978, § 60-13-23.1(B) (unannotated statutes, NMOneSource.com)
A person contracts without a license on a job worth $3,000. What sentence does Section 60-13-52 set?NMSA 1978, § 60-13-52(A) (unannotated statutes, NMOneSource.com)
A person is convicted a second time of contracting without a license. What sentence applies?NMSA 1978, § 60-13-52(C) (unannotated statutes, NMOneSource.com)
After a license is revoked, how long before the person may apply for a new one?NMSA 1978, § 60-13-29(A) (unannotated statutes, NMOneSource.com)
Before the commission acts to revoke a license, who besides the licensee must be given notice?NMSA 1978, § 60-13-27(D) (unannotated statutes, NMOneSource.com)
The commission assesses an administrative penalty on a licensee for a contract worth $4,000. What is the range?NMSA 1978, § 60-13-23.1(A) (unannotated statutes, NMOneSource.com)
Unlicensed contracting work is worth more than $5,000. What fine does Section 60-13-52 set?NMSA 1978, § 60-13-52(A) (unannotated statutes, NMOneSource.com)
What follows if an administrative penalty is not paid by the date the commission set?NMSA 1978, § 60-13-23.1(C) (unannotated statutes, NMOneSource.com)
What is the administrative penalty where the contract or work is worth more than $5,000?NMSA 1978, § 60-13-23.1(A) (unannotated statutes, NMOneSource.com)
Which of these is a cause for the commission to revoke or suspend a license?NMSA 1978, § 60-13-23 (unannotated statutes, NMOneSource.com)
Within how long after the division receives a complaint must the assigned investigator give the director a full written report?NMSA 1978, § 60-13-27(B) (unannotated statutes, NMOneSource.com)
How this list was compiled: Our own questions, written from the New Mexico Statutes Annotated 1978 as the New Mexico Compilation Commission publishes them at NMOneSource.com (unannotated): Chapter 60, Article 13 (Construction Industries Licensing Act; https://nmonesource.com/nmos/nmsa-unanno/en/item/18563/index.do), Chapter 48, Article 2 (mechanics' and materialmen's liens), Chapter 57, Article 28 (Prompt Payment Act), Section 52-1-6 and Sections 50-4-2 to 50-4-22, and from 14.6.3 NMAC, Contractor's License Requirements (https://www.srca.nm.gov/parts/title14/14.006.0003.html). Each section was read on 2026-10-12. The examination outline is the PSI candidate information bulletin for State of New Mexico contractor examinations, updated 4/3/2026 (https://test-takers.psiexams.com/api/content/bulletin/808), read 2026-10-12. Licence: Questions, choices and explanations are original work of this site. The statutes and rules are public law of the State of New Mexico. No question is taken from the state examination or from any study guide.
How it works
This unofficial New Mexico contractors license practice test asks 93 questions of our own on the Construction Industries Licensing Act, its rules, liens and payment. Estimating and accounting are not asked. Not affiliated with the New Mexico Construction Industries Division.
Read the full guide
Who takes the Business and Law exam
Every new qualifying party candidate, with any trade examination the classification needs. An approved course in business and law may stand in for it. The trade examination and this one must be passed within one year of each other.
What this page covers
The bulletin lists three references. Two are public law, and the questions come from them: the Act (NMSA Chapter 60, Article 13) and the license rule (14.6.3 NMAC). Lien, prompt payment, wage and workers' compensation statutes cover the outline's lien, contract and labor subjects.
Keep the 120-day rules apart: an original contractor's lien claim, a license left without a qualifying party, and work in progress after a sole proprietor dies.
Penalties turn on $5,000. At or below it the range is fixed. Above it they are a share of the work.
Questions and answers
How many questions are on the New Mexico Business and Law exam?
Fifty questions in 130 minutes, open book. The candidate bulletin updated April 3, 2026 sets the pass mark at 75 percent and prints it as 38 points.
Is there a free NM contractors license study guide?
The law is free to read: the Construction Industries Licensing Act on NMOneSource and 14.6.3 NMAC on the state records site, both linked under the answers. The exam's third reference is a book that is sold.
What does a New Mexico contractors license study guide need to cover?
The bulletin's outline has nine subjects: licensing requirements, estimating and bidding, business organization and financial management, tax laws, labor laws, project management and lien law, contracts, risk management, and environmental and safety.
Does this practice test cover the GB-98 or other trade exams?
No. Trade examinations are written from building, electrical and mechanical codes. This page asks the business and law side, and only the part of it that statutes and rules state.
Is this the real New Mexico contractor exam?
No. It is unofficial practice written from public law. The Construction Industries Division and PSI, its test vendor, did not write or review it, and no question comes from the state examination.