NEW MEXICO RESIDENTIAL BUILDING CONTRACTOR
(GB-2) – 250 PRACTICE QUESTIONS WITH ANSWERS &
RATIONALES
EXAM SECTION 1: NEW MEXICO CONSTRUCTION
INDUSTRIES DIVISION (CID) RULES (Questions)
1. According to the New Mexico Construction Industries Division (CID), how long
is a GB-2 contractor license valid before it must be renewed?
A) 6 months
B) 1 year
C) 2 years
D) 3 years
*Answer: B) 1 year
Rationale: New Mexico contractor licenses, including the GB-2 Residential Building
Contractor license, are valid for one year and must be renewed annually by June 30.
Failure to renew on time results in license expiration, and the contractor must reapply.
There is no grace period for late renewal.
2. What is the maximum monetary limit for a project that a GB-2 contractor can
perform without a separate specialty license in New Mexico?
A) No limit (as long as it is residential)
B) $50,000
C) $100,000
D) $500,000
,*Answer: A) No limit (as long as it is residential)
Rationale: A GB-2 Residential Building Contractor license allows the contractor to perform
residential work of any value, provided the structure is residential (up to 3 stories). There is
no maximum monetary limit for residential projects. However, the contractor must
subcontract any work that requires a specialty license (e.g., plumbing, electrical,
mechanical).
**3. A GB-2 contractor is performing a residential remodel. The contract price is $15,000.
What is the maximum down payment the contractor can legally collect?**
A) $1,500
B) $3,000
C) $4,500
D) $5,000
**Answer: C) $4,500**
*Rationale: New Mexico law prohibits contractors from collecting more than 30% of the
total contract price as a down payment. For a $15,000 contract, 30% equals $4,500. This
law protects consumers by limiting upfront payments before work begins. Progress
payments after work is completed are permissible.
4. Which of the following is a key difference between a GB-2 license and a GB-98
license in New Mexico?
A) GB-2 is for residential; GB-98 is for commercial
B) GB-2 requires more experience than GB-98
C) GB-2 requires a higher bond than GB-98
D) GB-2 is only for new construction
*Answer: A) GB-2 is for residential; GB-98 is for commercial
Rationale: The GB-2 Residential Building Contractor license is for residential structures (up
to 3 stories). The GB-98 Commercial Building Contractor license is for commercial and
industrial buildings. Both licenses have similar requirements, but the scope of work is
different. A GB-2 contractor cannot perform commercial work.
,5. According to New Mexico CID rules, what is the penalty for a contractor who
fails to maintain proper workers' compensation insurance?
A) A warning letter
B) A fine of $500
C) License suspension until proof of insurance is provided
D) Permanent license revocation
*Answer: C) License suspension until proof of insurance is provided
Rationale: New Mexico law requires contractors with employees to carry workers'
compensation insurance. Failure to maintain this coverage results in license suspension
until proof of insurance is provided. This protects employees from workplace injuries. The
CID takes workers' compensation requirements seriously.
6. A GB-2 contractor is bidding on a residential project. Which of the following
must be included in the bid proposal?
A) The contractor's license number
B) A detailed scope of work
C) An estimated timeline
D) All of the above
*Answer: D) All of the above
Rationale: A bid proposal should include the contractor's license number, a detailed scope
of work, an estimated timeline, and the total cost. This provides transparency and helps
the owner make an informed decision. A bid is not a contract but becomes one when
accepted by the owner.
7. According to the NMBC, what is the minimum required ceiling height for a
habitable attic space?
A) 6 feet
B) 6 feet 6 inches
C) 7 feet
D) 7 feet 6 inches
*Answer: C) 7 feet
Rationale: The NMBC requires a minimum ceiling height of 7 feet for habitable attic
, spaces (finished attics used as living areas). This is the same requirement as other
habitable rooms. If the attic is used for storage only, lower clearances may be acceptable.
8. What is the minimum required width for a residential hallway in New Mexico?
A) 28 inches
B) 30 inches
C) 32 inches
D) 36 inches
*Answer: D) 36 inches
Rationale: The NMBC requires residential hallways to have a minimum clear width of 36
inches. This ensures safe passage, especially for moving furniture and in emergency
situations. This requirement applies to all hallways in a residential building, including
those leading to bedrooms.
9. According to the NMBC, what is the maximum distance between guardrail posts
on a residential deck?
A) 4 feet
B) 6 feet
C) 8 feet
D) 10 feet
*Answer: B) 6 feet
Rationale: The NMBC requires guardrail posts to be spaced no more than 6 feet apart on
residential decks. This ensures the guardrail has adequate structural strength to resist a
200-pound lateral load. Posts must be properly anchored to the deck frame.
10. What is the minimum required distance between a ground-mounted air
conditioning condensing unit and a property line?
A) 3 feet
B) 5 feet
(GB-2) – 250 PRACTICE QUESTIONS WITH ANSWERS &
RATIONALES
EXAM SECTION 1: NEW MEXICO CONSTRUCTION
INDUSTRIES DIVISION (CID) RULES (Questions)
1. According to the New Mexico Construction Industries Division (CID), how long
is a GB-2 contractor license valid before it must be renewed?
A) 6 months
B) 1 year
C) 2 years
D) 3 years
*Answer: B) 1 year
Rationale: New Mexico contractor licenses, including the GB-2 Residential Building
Contractor license, are valid for one year and must be renewed annually by June 30.
Failure to renew on time results in license expiration, and the contractor must reapply.
There is no grace period for late renewal.
2. What is the maximum monetary limit for a project that a GB-2 contractor can
perform without a separate specialty license in New Mexico?
A) No limit (as long as it is residential)
B) $50,000
C) $100,000
D) $500,000
,*Answer: A) No limit (as long as it is residential)
Rationale: A GB-2 Residential Building Contractor license allows the contractor to perform
residential work of any value, provided the structure is residential (up to 3 stories). There is
no maximum monetary limit for residential projects. However, the contractor must
subcontract any work that requires a specialty license (e.g., plumbing, electrical,
mechanical).
**3. A GB-2 contractor is performing a residential remodel. The contract price is $15,000.
What is the maximum down payment the contractor can legally collect?**
A) $1,500
B) $3,000
C) $4,500
D) $5,000
**Answer: C) $4,500**
*Rationale: New Mexico law prohibits contractors from collecting more than 30% of the
total contract price as a down payment. For a $15,000 contract, 30% equals $4,500. This
law protects consumers by limiting upfront payments before work begins. Progress
payments after work is completed are permissible.
4. Which of the following is a key difference between a GB-2 license and a GB-98
license in New Mexico?
A) GB-2 is for residential; GB-98 is for commercial
B) GB-2 requires more experience than GB-98
C) GB-2 requires a higher bond than GB-98
D) GB-2 is only for new construction
*Answer: A) GB-2 is for residential; GB-98 is for commercial
Rationale: The GB-2 Residential Building Contractor license is for residential structures (up
to 3 stories). The GB-98 Commercial Building Contractor license is for commercial and
industrial buildings. Both licenses have similar requirements, but the scope of work is
different. A GB-2 contractor cannot perform commercial work.
,5. According to New Mexico CID rules, what is the penalty for a contractor who
fails to maintain proper workers' compensation insurance?
A) A warning letter
B) A fine of $500
C) License suspension until proof of insurance is provided
D) Permanent license revocation
*Answer: C) License suspension until proof of insurance is provided
Rationale: New Mexico law requires contractors with employees to carry workers'
compensation insurance. Failure to maintain this coverage results in license suspension
until proof of insurance is provided. This protects employees from workplace injuries. The
CID takes workers' compensation requirements seriously.
6. A GB-2 contractor is bidding on a residential project. Which of the following
must be included in the bid proposal?
A) The contractor's license number
B) A detailed scope of work
C) An estimated timeline
D) All of the above
*Answer: D) All of the above
Rationale: A bid proposal should include the contractor's license number, a detailed scope
of work, an estimated timeline, and the total cost. This provides transparency and helps
the owner make an informed decision. A bid is not a contract but becomes one when
accepted by the owner.
7. According to the NMBC, what is the minimum required ceiling height for a
habitable attic space?
A) 6 feet
B) 6 feet 6 inches
C) 7 feet
D) 7 feet 6 inches
*Answer: C) 7 feet
Rationale: The NMBC requires a minimum ceiling height of 7 feet for habitable attic
, spaces (finished attics used as living areas). This is the same requirement as other
habitable rooms. If the attic is used for storage only, lower clearances may be acceptable.
8. What is the minimum required width for a residential hallway in New Mexico?
A) 28 inches
B) 30 inches
C) 32 inches
D) 36 inches
*Answer: D) 36 inches
Rationale: The NMBC requires residential hallways to have a minimum clear width of 36
inches. This ensures safe passage, especially for moving furniture and in emergency
situations. This requirement applies to all hallways in a residential building, including
those leading to bedrooms.
9. According to the NMBC, what is the maximum distance between guardrail posts
on a residential deck?
A) 4 feet
B) 6 feet
C) 8 feet
D) 10 feet
*Answer: B) 6 feet
Rationale: The NMBC requires guardrail posts to be spaced no more than 6 feet apart on
residential decks. This ensures the guardrail has adequate structural strength to resist a
200-pound lateral load. Posts must be properly anchored to the deck frame.
10. What is the minimum required distance between a ground-mounted air
conditioning condensing unit and a property line?
A) 3 feet
B) 5 feet
