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Exam Review

Key Facts: NM General Contractor Exam

70%

Passing Score

State Board

100 Q

Practice Questions

OpenExamPrep

3.5 hrs

Exam Time

State Board

Accepted

NASCLA

NASCLA

4 years

Experience Required

State Board

New Mexico requires general contractors to pass a state Business & Law exam. The exam covers NM licensing law, contract law, lien law, bonds, insurance, safety codes, and business management.

Sample NM General Contractor Practice Questions

Try these sample questions to review concepts for the NM General Contractor exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which state agency is responsible for licensing general contractors in New Mexico?
A.Construction Industries Division (CID) of the Regulation & Licensing Department
B.New Mexico Department of Labor
C.New Mexico Secretary of State
D.New Mexico Taxation and Revenue Department
Explanation: The Construction Industries Division (CID) under the New Mexico Regulation & Licensing Department is responsible for licensing all contractors in the state, including general building contractors.
2What is the annual revenue threshold above which a New Mexico contractor must be licensed?
A.$7,200
B.$5,000
C.$10,000
D.$15,000
Explanation: In New Mexico, a contractor's license is required when construction-related revenue exceeds $7,200 annually. This threshold is monitored by the Construction Industries Division.
3What is the GB-2 license classification in New Mexico?
A.Residential Building Contractor
B.Commercial General Building Contractor
C.Specialty Contractor
D.Engineering Contractor
Explanation: The GB-2 classification in New Mexico is for Residential Building Contractors, permitting work on homes, residences, and apartment houses up to four family units.
4What is the GB-98 license classification in New Mexico?
A.General Building Contractor (commercial and residential)
B.Residential Building only
C.Electrical Contractor
D.Plumbing Contractor
Explanation: The GB-98 classification is for General Building Contractors in New Mexico, allowing both commercial and residential construction work of all types.
5How many exams must a New Mexico general contractor pass to obtain a license?
A.Two: a trade exam and a business and law exam
B.One: a combined trade and law exam
C.Three: trade, law, and safety
D.No exam is required
Explanation: New Mexico general contractors must pass two separate exams: a trade-specific exam (such as GB-2 or GB-98) and a Business and Law exam based on the NASCLA guide.
6What is the passing score for the New Mexico Business and Law exam?
A.75% (38 out of 50 questions)
B.70% (35 out of 50 questions)
C.80% (40 out of 50 questions)
D.60% (30 out of 50 questions)
Explanation: The NM Business and Law exam consists of 50 questions with a passing score of 75%, which means candidates must correctly answer at least 38 questions within the 130-minute time limit.
7What reference book is the primary source for the New Mexico Business and Law exam?
A.NASCLA Contractors Guide to Business, Law and Project Management
B.International Building Code (IBC)
C.OSHA Construction Safety Manual
D.NM Statutes Annotated only
Explanation: The NM Business and Law exam questions are based on the NASCLA Contractors Guide to Business, Law and Project Management, which covers licensing, estimating, business organization, tax law, labor law, contracts, and safety.
8What is a 'Qualifying Party' (QP) in New Mexico contractor licensing?
A.An individual who meets experience and exam requirements and is designated to qualify the business for its license
B.The property owner who hires the contractor
C.A government inspector who approves the license
D.A bonding company representative
Explanation: A Qualifying Party (QP) is the individual designated by a contracting business who meets the experience, education, and examination requirements to qualify the company for its contractor license.
9How many years of experience does a Qualifying Party typically need for a NM general contractor license?
A.Two to four years of journeyman-level experience, depending on license type
B.One year of any construction experience
C.Five years minimum
D.No experience is required
Explanation: New Mexico requires the Qualifying Party to have two to four years of verified journeyman-level experience, depending on the license classification. Up to two years of education may substitute for experience.
10What is the application fee for a new GB-2 or GB-98 contractor license in New Mexico?
A.$30
B.$100
C.$250
D.$500
Explanation: The application fee for a new GB-2 or GB-98 contractor license in New Mexico is $30, with an additional $100 annual license fee for each classification.

About the NM General Contractor Exam

The New Mexico general contractor exam covers state licensing law, construction contract law, mechanics lien law, bonding and insurance requirements, OSHA safety, building codes, project management, and business practices.

Exam sponsor: New Mexico Construction Industries Division. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

100 questions

Time Limit

3.5 hours

Passing Score

70%

Exam / Certification Fees

$150

Exam sponsor website

Reported exam pass rate: 60%. estimated first-time pass rate This describes exam candidates, not OpenExamPrep users or results from using our resources. Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

30%

Business & Law

New Mexico licensing statutes, contractor law, lien law, bonds, insurance, penalties

25%

Contract Law

Construction contracts, change orders, disputes, subcontractor agreements

20%

Safety & Codes

OSHA requirements, building codes, permits, inspections

15%

Project Management

Scheduling, estimating, supervision, quality control

10%

Financial

Accounting, taxes, payroll, financial statements, insurance

Preparing for the NM General Contractor Exam

What You Need to Know

  • Passing score: 70%
  • Exam length: 100 questions
  • Time limit: 3.5 hours
  • Exam / certification fees: $150 Official sources

Using Our Practice Resources

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

NM General Contractor: Suggested Study Strategy

1Master New Mexico's contractor licensing laws and regulations
2Study mechanics lien law — filing deadlines and requirements are heavily tested
3Know bond types: bid bonds, performance bonds, payment bonds
4Review OSHA safety requirements and penalties
5Understand construction contract terms and change order procedures

Frequently Asked Questions

What does the New Mexico general contractor exam cover?

The NM GC exam covers state contractor licensing law, construction contracts, mechanics lien law, bonding, insurance, OSHA safety, building codes, and business management.

What is the passing score for the NM GC exam?

A minimum score of 70% is required to pass the New Mexico general contractor licensing exam.

Does New Mexico accept the NASCLA exam?

New Mexico accepts the NASCLA accredited exam for the trade portion of the contractor exam, but New Mexico still requires its own state Business & Law exam.

What experience is needed for a New Mexico contractor license?

New Mexico typically requires 4 years of verifiable construction experience before applying for a general contractor license.