All states New Mexico

1. Get the license number from the contractor

   Ask for the license number before anything else. A licensed contractor has it on the bid, the contract, the business card and often the truck. If someone says "we're licensed and insured" but can't produce a number on the spot, treat that as your first answer.

   Write down the exact business name as well as the number. In New Mexico the license may be held by a company or by an individual, and the name on your contract has to match the name on the license.

2. Search the number on the official site

   Search the number on the official site. In New Mexico that is the NM Regulation and Licensing Department, Construction Industries Division (CID) (opens official site) license search at public.psiexams.com. Search by the number first; a name search can miss a business that is licensed under a different legal name.

3. Read the record: status, name, expiration

   Three things have to line up. The status should say active, current or valid, not expired, inactive, suspended or revoked. The name on the license should be the business or person on your contract. The expiration date should be after the day the work finishes, not just after the day you sign.

   Look for a complaints or discipline section on the record. Most New Mexico license searches show open complaints, past discipline and sometimes bond claims. One old complaint on a long-running license is normal; several recent ones are not.

4. Check that the license covers your job

   New Mexico licenses general, residential, electrical, plumbing, HVAC and roofing work at the state level. A license covers one kind of work, so a roofer's license doesn't cover your electrical panel, and a specialty license doesn't cover a whole remodel. Check that the classification or license type on the record matches the job you are hiring for.

   Hiring for one trade? New Mexico may license it through a different board. See electricians in New Mexico , plumbers in New Mexico or HVAC contractors in New Mexico .

5. Know the small-job line

   New Mexico lets unlicensed people do small jobs under $7,200 per year. A handyman doing casual, minor work, one project at a time, totaling no more than $7,200 a year needs only a handyman certificate (annual declaration), not a contractor license. Does not cover electrical, plumbing or gas work, or advertising as a contractor. Above that line, the person doing the work needs a license, and the exemption doesn't cover someone who splits a big job into small invoices.

6. Ask for proof of insurance

   A bond is also required: $10,000 surety bond at initial licensure and each renewal.

   Whatever the state requires, ask for a certificate of insurance made out to you, and call the insurer on the certificate to confirm it is current. A license search tells you the contractor met the requirement when the license was issued or renewed, not that the policy is still paid.

7. Make sure the permit is pulled in the contractor's name

   Any job that needs a permit should have the permit pulled by the contractor, under the contractor's license. A contractor who asks you to pull the permit as the homeowner is usually hiding a license problem. Building permits in New Mexico (opens official site) .

8. If something goes wrong, file with the board

   If the contractor stops showing up, does work the permit doesn't cover, or the license turns out to be wrong, put it in writing to them first, stop paying, then file a complaint in New Mexico (opens official site) . Boards can suspend licenses, which gets attention a lawsuit doesn't.