Do I have to take the New Mexico general contractor exam if I'm licensed in South Dakota?

The trade exam is waived, but New Mexico requires a law or code exam.

How long do I need to have held my South Dakota license?

At least 1 year before applying.

What does it cost to get a New Mexico general contractor license from South Dakota?

Published fees on this path total $667.94, not counting exam vendor fees or bonds.

Do my South Dakota work hours count in New Mexico?

Yes. Documented out-of-state experience counts toward New Mexico's eligibility requirements.

Does it work the other way, from New Mexico to South Dakota?

Not necessarily. Reciprocity is directed. Going from New Mexico to South Dakota, the mechanism is not applicable.

South Dakota to New Mexico: general contractor license reciprocity

No credit· Start overVerified September 17, 2026· 12 sources

South Dakota does not issue a statewide general contractor license, so there is nothing to transfer. Here is New Mexico's standard path for out-of-state applicants.

Your origin state does not issue a statewide license at this level, so there is no license to transfer. The destination's standard out-of-state path is shown; expect to meet it in full.

Reference only, not legal advice. Rules change; confirm with the licensing board before you apply. Full disclaimer.

GB-98 trade exam waived on the NASCLA Accredited Examination (every state)

Your out-of-state credentials give no advantage. You meet the destination's requirements from scratch.

New Mexico runs no named-state contractor reciprocity: the only reciprocity the Construction Industries Division publishes is for the EE-98J electrical journeyman certificate, and holding another state's general contractor license is worth nothing on its own here. What CID does accept, from an applicant in any state, is the NASCLA Accredited Examination. Under 14.6.3.8(G)(2)(f) NMAC the bureau chief may waive the state-specific written trade exam for a Qualifying Party who passed the NASCLA general construction accredited examination, and CID's own Qualifying Party application limits that waiver to the GB-98 and EE-98 classifications, so at this level a NASCLA pass replaces the two-part GB-98 exam. Three things come with it: the candidate must have used the NASCLA scores to obtain a license in another state and held that license for at least a year, must attach a letter of good standing from that state, and must release the NASCLA transcript to New Mexico from the NASCLA website rather than sending a copy. Nothing else is waived. The four years (8,000 hours) of foreman-level experience, at least two of them commercial, must still be documented on notarized affidavits, the Business and Law exam or approved course still applies, and the company still files the bond, the tax registration certificate and the entity paperwork. An applicant without a NASCLA pass simply sits the GB-98 exam.

The rule says the bureau chief 'may waive' the trade exam, and CID verifies the NASCLA transcript itself after PSI accepts the application and the experience; if CID denies the waiver the applicant is contacted and registered for the full exam sequence, so do not stop studying while the transcript is being checked. The NASCLA waiver is not open at the GB-2 residential level. Out-of-state experience counts in full toward the 8,000 hours where it was gained working for a contractor licensed in the trade or was legal work in the state where it was performed, and an out-of-state contractor signing the affidavit attaches a copy of their current state license; accredited training counts at one-half year per year up to half the requirement, and estimating, project management and supervision do not count as hands-on. Once PSI approves the application, all remaining requirements must be met within six months or the fees are forfeited, exam scores are good for one year, and the trade and Business and Law results must be within a year of each other. NMSA 60-13-14(C) allows the division, with the commission's consent, to enter reciprocal licensing agreements with states having equivalent requirements; no such agreement covering a building classification has been published, so ask the Construction Industries Division before assuming one exists.

At a glance

Trade exam: Waived
Law / code exam: Required
Out-of-state hours: Count toward eligibility

What you must already have

You must have passed a licensing exam in South Dakota that the destination considers comparable.14.6.3.8(G)(2)(f) NMAC lets the bureau chief waive the state-specific written trade exam for a Qualifying Party who passed the NASCLA general construction accredited examination at the passing score, and CID's Qualifying Party application states the waiver is 'Applicable for Qualifying Party's applying for GB98 & EE98 ONLY' and that it 'removes the trade exam requirement ONLY'. The transcript must be released to New Mexico through the NASCLA website; CID verifies it directly. NASCLA is an exam credential rather than a license or an agreement between states, so it is available to a candidate from any state, and it waives no fee, bond, insurance, entity or experience requirement.
You must have held your South Dakota license for at least 1 year.CID's Qualifying Party application requires that the candidate 'must have taken the exam, used scores to obtain a license in another state, and held that license for a minimum of one year'. A NASCLA pass that was never used to obtain a license, or a license held for less than a year, does not support the waiver.
Your South Dakota license must be active and in good standing.
You must document at least 8,000 hours of qualifying work experience.Four years (8,000 hours) of foreman-level practical or related trade experience within the ten years immediately before application, of which at least two years must be commercial experience (14.6.6.9(B)(2) NMAC; NMSA 60-13-14(B)(8)). It is documented on notarized General Building Work Experience Verification affidavits, one per employer or affiant, completed by an employer, supervisor, foreman or other contractor, and the affidavit must say whether the experience was residential or commercial. The NASCLA waiver does not reduce it.
Experience must have been gained while employed by a contractor licensed in the trade being applied for, or be work that was legal in the state where it was performed. An out-of-state contractor certifying the experience attaches a copy of their current state license to the affidavit; where that state does not license the trade, proof that the company was active and valid is attached instead.

What you'll do to get licensed in New Mexico

1Application fee. Pay the application fee ($30). Non-refundable Qualifying Party application fee, paid to PSI with the notarized application, the work-experience affidavits and, for a NASCLA waiver, the letter of good standing from the licensing state. Complete packets go to the PSI Albuquerque office by hand or mail; faxed and emailed forms are not accepted..
2Other. Qualifying Party certificate fee, charged for each classification on the application (14.5.5.14(A) NMAC). With the $30 application fee this is the $36 the Construction Industries Division quotes for a single-classification Qualifying Party filing. ($6).
3Trade exam. Pass the destination's trade exam (if applicable). GB-98 General Building Contractor exam, required only where the NASCLA waiver is not used or is not granted. It is a two-part test administered by PSI: Part 1 is the GB-2 Residential Building Contractor paper, 80 questions in 225 minutes, and Part 2 is the commercial paper, 100 questions in 310 minutes, both open book and both needing 75% to pass. Part 2 covers sitework, concrete, masonry, carpentry, metals, roofing, associated trades, general code, plan reading and estimating, and OSHA safety against the 2021 New Mexico Commercial Building Code (14.7.2 NMAC) and the 2021 International Building Code. Both parts must be passed; a candidate who fails one part retakes only that part..
4Exam fee. Pay the exam fee ($269.06). PSI fee for the two-part GB-98 exam taken as a combination, which includes the GB-2 paper. A single part costs $134.53 as a retake. A candidate whose NASCLA waiver is approved pays no trade exam fee..
5Law / code exam. Pass a law, rules, or code exam. Contractor's Business and Law exam, required of all new Qualifying Party candidates and never waived by the NASCLA route: 50 questions, 130 minutes, open book, 75% (38 points) to pass, covering licensing requirements, estimating and bidding, business organization and financial management, tax and labor law, project management and lien law, contracts, risk management, and environment and safety. An approved Business and Law course taken with a CID-approved vendor may be completed in place of the exam, and an individual who is already an active Qualifying Party does not repeat it when adding a classification..
6Exam fee. Pay the exam fee ($68.88). PSI fee for the Business and Law exam..
7Contractor license. Hold or obtain a contractor license ($30). Non-refundable contractor license application fee paid to PSI by the business, filed with the notarized Contractor License Application, a copy of the Qualifying Party's certificate or passing score reports, and the Business and Law score or course certificate. A $6 certificate fee covering the license certificate and two wallet cards is charged with it..
8License fee. Pay the license or certificate fee ($300). Classification fee for GB-98, covering the full three-year license term on PSI's current schedule. Adding a GS specialty classification alongside it does not raise the total above $300 for the category. Late renewal costs $1 a day for the first 30 days and the equivalent of one year's fee from 30 to 90 days; after 90 days the license is cancelled and the business must reapply..
9Surety bond. Post a surety bond ($10,000). $10,000 code bond from a corporate surety authorized to transact business in New Mexico, issued in the exact name shown on the application and effective for the entire three-year license period. It is the statutory proof of responsibility, may be drawn on only to cure division-certified code violations the licensee has not corrected, and must be kept in force for the whole term; claims are limited to two years after final inspection or issuance of a certificate of occupancy. New Mexico sets no net worth, working capital or financial statement test for a contractor license..
10Insurance. Carry the required insurance. Workers' compensation coverage is required of every licensed entity, and failure to maintain it is cause for revocation of the license. A sole proprietor with no employees may be exempt; the Workers' Compensation Administration can confirm. An application is placed on hold while the applicant is out of compliance. CID does not require a general liability policy for the license itself, though owners and general contractors normally require one by contract..
11Business license. Obtain a business license. A registration certificate issued within the last twelve months by the New Mexico Taxation and Revenue Department in the exact name on the license application, plus proof of registration with the New Mexico Public Regulation Commission for a corporation or LLC, or with the Secretary of State for a limited liability partnership or limited partnership. A corporation, LLC, LP or LLP must be legally authorized to do business in New Mexico before the license issues, the proposed name must be cleared with PSI first, and each member of a joint venture must itself hold a New Mexico license..
12Background check. Complete a background check. CID reviews the application against the disqualifying felony convictions listed in 14.6.3.8(F) NMAC and may deny a license or certificate on that basis; sealed, dismissed, expunged or pardoned convictions and juvenile adjudications are not used. An application is also held where there are pending CID disciplinary actions, a workers' compensation compliance problem, a child support delinquency for the proposed Qualifying Party, or an open unlicensed-activity investigation..

Published fees on this path total $667.94, excluding exam-vendor fees, bonds, and insurance.

What you'll need to buy or arrange

Exam preparation

Most boards contract PSI, Prov, or ICC for exams. Check which code edition the exam is written to before buying a prep course.

Trade exam · if applicable
Exam fee · $269.06
Law / code exam
Exam fee · $68.88

Surety bond

A license or contractor bond is bought from a surety, not the state. Price is a small percentage of the bond amount and depends on your credit.

Surety bond · $10,000

Liability insurance

Some states require proof of general liability or workers' compensation coverage at licensing time.

Insurance

Business registration

If you plan to contract in your own name, budget for a business license or entity registration on top of the trade license.

Business license

How New Mexico licenses general contractors

New Mexico general contractor · “GB-98 General Building Contractor”

Statewide license

Verified September 17, 2026· 6 sources

Issued by New Mexico Regulation and Licensing Department, Construction Industries Division (CID), General Construction Bureau; licensing paperwork and exams handled by PSI

New Mexico's unlimited building tier is the GB-98 General Building classification issued by the Construction Industries Division: erect, alter, repair or demolish residential and commercial buildings and certain structures, including everything the GB-2 residential classification and the GF-5, GF-7 and GS specialty classifications cover, plus seal coating and striping of driveways and parking lots. There is no dollar cap on a GB-98 license, but it is a building classification rather than a universal one, so it excludes structures covered by the electrical (EE), mechanical and plumbing (MM), asphalt and concrete (GA) and fixed works (GF) classifications; the separate GA classifications run from GA-1, streets, roads and highways, through GA-98, and a GB-98 contractor may not prime a project whose major portion by dollar value falls in a GA classification or in most GF classifications. The license belongs to a business that employs or is owned by a Qualifying Party, and that individual is the one who documents the experience, passes the exams and holds a personal certificate of qualification. A GB-98 Qualifying Party needs four years (8,000 hours) of foreman-level experience within the last ten years, of which at least two years must be commercial, and must pass the two-part GB-98 exam and the Contractor's Business and Law exam or an approved course in its place. The entity files a $10,000 code bond and carries workers' compensation, and the license runs three years.

Moving to New Mexico Leaving New Mexico

Why South Dakota has nothing to transfer

South Dakota general contractor

Licensed by cities and counties

Verified September 17, 2026· 10 sources

South Dakota has no state general, commercial or building contractor license and no state board that examines or qualifies builders, so there is nothing at state level for an out-of-state general contractor's license to transfer into. The Department of Labor and Regulation's occupational licensing list has an Electrical Commission, a Plumbing Commission and a Board of Technical Professions for architects and engineers, and no contractor board, so the credentials that matter at state level are the electrical and plumbing licenses held by the subcontractors and the design professionals who stamp the drawings. Commercial building is governed locally, and most of the state's larger cities license less at this level than at the residential one: Sioux Falls states that it 'does not require Commercial Building Contractors to be licensed at this time', Aberdeen says commercial contractors are not required to be licensed through the city because commercial projects are designed and overseen by architects and engineers, and Brookings publishes a residential contractor license and no commercial equivalent. Rapid City is the exception, licensing a Class A general contractor for construction of all types of structures on the ICC National Standard General Building Contractor (A) examination. Every contractor, commercial included, must hold a free contractor's excise tax license from the Department of Revenue before starting work anywhere in the state, and the 2% contractor's excise tax falls on the prime contractor's gross receipts.

How local licensing works in South Dakota

How it works in South Dakota. No South Dakota agency issues a general, commercial, building or unlimited contractor license, and there is no state qualifying party, business-and-law examination or financial responsibility test. Commercial construction is controlled through the building permit and the plan review, and by the state's requirement that commercial projects be designed and overseen by licensed architects and engineers. The one thing the state does require of every commercial contractor is a contractor's excise tax license from the Department of Revenue: 'an individual must be licensed before starting work in South Dakota. All contractors must be licensed regardless of the amount of the receipts they have or the amount of tax due.' It is free, it is applied for online, and the 2% contractor's excise tax is imposed on the gross receipts of the prime contractor. Get it first; cities ask for the card.

Rapid City. This is the one city of the four that licenses commercial builders, and its Class A license is the most demanding contractor credential in South Dakota. Class A is the 'General Contractor' class, 'for construction of any and All types of structures', and it is issued on the ICC National Standard General Building Contractor (A) examination, known as the G11, taken through Pearson VUE: 4.5 hours, 90 multiple-choice questions, open book, based on the 2018 International Building Code and the 2018 International Residential Code, with an examination fee of $115.00 and testing at the Career Learning Center, 730 E Watertown St. The license itself is $200 initially and $100 to renew, runs three years and carries six hours of continuing education per period. Every applicant files a certificate of insurance naming the City of Rapid City as certificate holder, and no other form is accepted, with minimum general aggregate liability of $1,000,000, $300,000 fire damage and $1,000,000 each occurrence, plus a workers' compensation certificate or a signed statement of non-participation. A copy of the South Dakota excise tax certificate is part of the packet, and an electrical contractor class separately requires proof of a South Dakota electrical contractor's license. No verifiable experience is required for Class A, and the packet offers no waiver, credit or reciprocity for a contractor license held in another city or another state: a licensee who lets the license lapse beyond the one-year grace period must reapply and pass the examination again. Building Services is on (605) 394-4120.

Sioux Falls. The city's position is one sentence long: 'The City of Sioux Falls does not require Commercial Building Contractors to be licensed at this time.' What it requires instead is that each individual project goes through plan review and obtains the proper permits. Note that apartment buildings count as commercial for construction purposes even though they are residential in use, so a multifamily builder falls outside the residential license as well. The electrical, mechanical, plumbing, refrigeration, sign and right-of-way trades are separately licensed by the city, and right-of-way contractors must be bonded and insured before working in a city right-of-way. Plans examiners are on 605-367-8248 and building inspectors on 605-367-8251.

Aberdeen. 'Because the majority of commercial construction projects are required to be designed and overseen by design professionals (i.e. Professional Architects and Professional Engineers), Commercial Contractors are not required to be licensed through the City of Aberdeen. Commercial Contractors are required to obtain a South Dakota Excise Tax License.' Electricians are licensed by the state, with state permits and state inspections in Aberdeen; plumbers are licensed by the state but permitted and inspected by city inspectors. Building Inspection is at City Hall, 123 South Lincoln Street, 3rd Floor, 605-626-7017.

Brookings. Community Development issues a residential contractor license, a plumber license, building permits and rental licenses, and publishes no commercial or general building contractor license; all work must conform to the International Building Code and electrical and plumbing work must be done by trades licensed by the state and the city. Because the city publishes no commercial contractor application, confirm what is expected of a commercial builder with Community Development on (605) 692-6629 before bidding. Building permits also apply on nonagricultural land in the joint jurisdictional area about three miles beyond the city.

Everywhere else. Other South Dakota cities set their own permit and licensing rules, and the further from the larger cities you go the more likely it is that a permit and proof of insurance are all that is asked. Check with each building official, and hold the state excise tax license wherever you work.

Moving to South Dakota Leaving South Dakota

Common questions

Do I have to take the New Mexico general contractor exam if I'm licensed in South Dakota?: The trade exam is waived, but New Mexico requires a law or code exam.
How long do I need to have held my South Dakota license?: At least 1 year before applying.
What does it cost to get a New Mexico general contractor license from South Dakota?: Published fees on this path total $667.94, not counting exam vendor fees or bonds.
Do my South Dakota work hours count in New Mexico?: Yes. Documented out-of-state experience counts toward New Mexico's eligibility requirements.
Does it work the other way, from New Mexico to South Dakota?: Not necessarily. Reciprocity is directed. Going from New Mexico to South Dakota, the mechanism is not applicable.

Sources

NASCLA Accredited Examination for Commercial General Building Contractors · National Association of State Contractors Licensing Agencies · Other · verified September 17, 2026
Construction Industries Licensing Act, NMSA 1978 Chapter 60, Article 13 (RLD compilation as of July 1, 2021) · NMSA 1978 §§ 60-13-3, 60-13-14, 60-13-14.1, 60-13-23, 60-13-49 · New Mexico Regulation and Licensing Department · Statute · verified September 17, 2026
14.5.5 NMAC - Construction Industries General Provisions: Fees · 14.5.5.8 and 14.5.5.14 NMAC · New Mexico Commission of Public Records, State Records Center and Archives · Admin Rule · verified September 17, 2026
14.6.3 NMAC - Construction Industries Licensing: Contractor's License Requirements · 14.6.3.8 NMAC · New Mexico Commission of Public Records, State Records Center and Archives · Admin Rule · verified September 17, 2026
14.6.6 NMAC - Construction Industries Licensing: Classifications and Scopes of Work · 14.6.6.8 and 14.6.6.9 NMAC · New Mexico Commission of Public Records, State Records Center and Archives · Admin Rule · verified September 17, 2026
NM CID - How to Obtain a Contractor License and Contractor License Application (updated October 2023) · PSI Services for the New Mexico Construction Industries Division · Form · verified September 17, 2026
State of New Mexico Contractor (Qualifying Party) Examinations Candidate Information Bulletin (PSI) · PSI Services for the NM Construction Industries Division · Other · verified September 17, 2026
New Mexico Contractor Licensing - Frequently Asked Questions (CID / PSI) · PSI Services for the New Mexico Construction Industries Division · Faq · verified September 17, 2026
PSI General Building Work Experience Verification - New Mexico Contractor Licensing Service · PSI Services for the New Mexico Construction Industries Division · Form · verified September 17, 2026
New Mexico Licensing Fees (CID contractor, qualifying party and journeyman fee schedule) · PSI Services for the New Mexico Construction Industries Division · Other · verified September 17, 2026
NM CID Qualifying Party Certificate Application and Instructions (instructions updated May 2025, form updated August 2025) · PSI Services for the New Mexico Construction Industries Division · Form · verified September 17, 2026
NM Regulation and Licensing Department - Apply for a Construction Industries License · New Mexico Regulation and Licensing Department, Construction Industries Division · Agency Page · verified September 17, 2026

Verified dates are when a person last opened each source and confirmed the facts above. Cite the board, not us.

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