The New Mexico Construction Industries Division licenses contractors under the Construction Industries Licensing Act, NMSA 1978, Section 60-13-1 et seq. Before signing for water damage work, ask the contractor for its license number and classification in writing, and confirm them with the Division yourself.
Key takeaways
- The Construction Industries Division licenses contractors under the Construction Industries Licensing Act, NMSA 1978, Section 60-13-1 et seq.
- A license number and its classification should be given in writing before any structural work is signed.
- A homeowner should confirm the license with the Division directly, rather than relying on a van, a sign or a card.
- A license tells you the contractor is registered for a class of work, and it does not describe the quality of the work or the price.
- Insurance and the written scope are separate checks, and both should be asked for alongside the license.
- Where a trade needs a particular classification, the classification the firm holds should match the work it is doing.
Who licenses contractors in New Mexico?
The Construction Industries Division of New Mexico licenses contractors. Its licensing role comes from the Construction Industries Licensing Act, NMSA 1978, Section 60-13-1 et seq., and the Division publishes information about its work on its own website.
A contractor who does structural or construction work in the state is expected to hold a license that matches the work. The license is issued by the Division, and it is the record a homeowner should check before a contract is signed. The Division's About Us page, linked in this guide's sources, describes its role.
The license is a separate question from the price or the quality of the job. A licensed contractor can still do poor work, and an unlicensed one can be careful. The license is a check on registration and classification, and a homeowner should use it alongside the written scope, the insurance certificate and the references.
How do I ask for the license number?
Ask the contractor for its license number and the classification it holds for the work, and ask for both in writing on the quote or the contract. A contractor that is properly licensed can give the number without delay.
Ask for the name the license is held under, since a company may operate under a different trade name from the one on the license. The name on the license should match the name on the contract and the invoice, and any difference should be explained before signing.
A contractor who will not give the number, or who gives a number that cannot be found, should not be hired for structural work. Ask again, in writing, and keep the reply with the contract.
How do I confirm the license with the Division?
Confirm the number with the Construction Industries Division directly, using the Division's own website or its office. Do not rely only on the contractor's copy of the license, a card or a document shown on a phone, because those can be out of date or made up.
Check that the name, the number and the classification all match what the contractor gave you. A license that is held by one person or company and quoted by another should be questioned before the work begins.
Write down the date you checked, the number and what the Division's record showed. That note is useful if the contractor's status changes during the job, and it is worth showing to an insurer or a lender who asks how the contractor was chosen.
What does a license prove, and what does it not?
A license shows the contractor is registered with the state for a class of work. It does not show the quality of the work, the price, the timing or whether the contractor will finish the job, and it does not replace insurance or a written scope.
A license is a useful check on whether the contractor is registered for the work. It tells a homeowner whether the state recognizes the contractor for that class, and it gives a fixed point of reference if the work is not what was agreed.
The other checks are separate. Ask for the contractor's insurance certificate, the written scope with the materials and the goal, and the names of the people who will be on the site. Those answers say more about the job than the license alone.
| Check | What to ask for | Where it is confirmed |
|---|---|---|
| License | License number and the classification held for the work | Construction Industries Division, using its own records |
| Name match | The name the license is held under, the contract name and the invoice name | Compared line by line before signing |
| Insurance | A current insurance certificate from the contractor | From the insurer named on the certificate |
| Written scope | Rooms, materials, removals, dry goal and expected run time | In the signed scope, before work continues |
| Asbestos work | The specific license for that class, if suspect material is found | Confirmed with the Division before the work is done |
What if the license does not match the work?
If a license does not match the work, the contractor should be asked to explain the classification it holds and whether another contractor with the right classification should do the work. Do not sign a contract for work that the license does not cover.
Some work, such as the removal of suspect asbestos, needs a specific classification, and a general license may not cover it. The Division's classifications decide which class applies, and the contractor should say so in writing.
A contractor who says the license covers work it does not cover is a reason to stop and check again. A homeowner can ask the Division which class applies to the work before any money changes hands.
Which red flags should I watch for?
Watch for a contractor who will not give a license number, who asks for payment before a written scope exists, who claims a license that cannot be found or who offers work on a van with no name or number. Each is a reason to stop and check again.
Pressure to sign on the day, a price given without a scope and a contractor who discourages checking the license are common warning signs. A legitimate contractor expects the homeowner to check, and welcomes it.
Pay attention to contractors who knock on doors after a storm. A homeowner should not sign for structural work at the door, and should take the time to check the license, the insurance and the scope before deciding.
How does the license check fit with the insurance claim?
The insurer may ask who did the work and whether the contractor was licensed. A written record of the license check, the scope and the contractor's insurance helps answer those questions, and it keeps the claim and the repair on the same record.
Keep the license number, the insurance certificate, the scope and the record of the check in one place. The insurer and any later repair trade may ask for them, and having them to hand shortens the conversation.
The insurer decides what the policy covers, and this guide does not say what a policy pays. The license check is a homeowner's protection in choosing a contractor, and it is not a statement about coverage.
What should the written contract say about the license?
The contract should name the contractor, the license number, the classification held for the work and the name the license is held under. It should say that the contractor will keep the license in force for the whole job and will tell the owner in writing if that changes.
A contract that names the license makes the check simple and gives the owner a document to rely on later. A contract that refers to a license without a number, or that leaves the classification out, makes it hard to show the contractor was checked when a question comes up.
The contract should also name the insurance certificate and the date it was issued, so the owner can confirm the insurer on it. An owner who keeps the signed contract with the license check note has a complete record of how the contractor was chosen and confirmed.
How do I keep a record of the license check?
Write down the date you checked, the number, the classification, the name on the license and what the Division's record showed. Keep the note with the contract and the scope, and add the date of any later check.
A short written note is enough. It should say who checked, how the check was made and whether the name and number matched. If the Division's record differed from what the contractor said, write that down too, and do not sign until it is explained.
The note is useful if a question comes up later, from an insurer, a lender, a buyer or a repair trade. It shows the contractor was checked against the state's record at a particular date, which is a stronger position than a memory of the conversation.
Frequently asked questions
Which law governs contractor licenses in New Mexico?
The Construction Industries Licensing Act, NMSA 1978, Section 60-13-1 et seq., governs the licensing of contractors, and the Construction Industries Division administers it. This guide does not summarize the whole Act, and the Division can explain how it applies to a particular class of work.
Can I rely on the contractor's license card?
A card or a copy can be out of date or can be altered. Check the number and the classification with the Construction Industries Division directly, and keep a note of the date and the result.
What if the contractor is a subcontractor for another firm?
Ask who the contractor is, who holds the license for the work and who is responsible for the job. The name on the contract and on the license should match, and any subcontractor should be named and checked in the same way.
Does the license cover water damage work?
That depends on the classification and the work involved. Ask the contractor which classification covers the water damage work it proposes, and confirm the answer with the Division before signing.
Do I need a license to do my own drying?
A homeowner doing work on their own home is a different question from a contractor doing work for others. This guide does not give legal advice on the point, and the Division can explain the rules that apply.
What should I do if I cannot confirm the license?
Do not sign until the license is confirmed. Ask the contractor for another number or for the name of the person who holds the license, and check again. A contractor that cannot be confirmed should not be hired for structural work.
Sources
This guide is general information for Bernalillo County homeowners, not a substitute for an on-site inspection. Prices are estimates. See our disclaimer.