Maintain State Oversight of Construction and Licensing

Associated General Contractors
New Mexico Building Branch
1615 University Blvd. NE Albuquerque, NM 87102-1791
505-842-1462
FAX: 505-842-1980
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AGC supports state enforcement of building codes and standards and licensing of contractors. These actions are important and necessary for the welfare of the citizens of New Mexico. AGC has contributed resources to this philosophy. The true cost of doing business in this industry must not be cheapened or diluted. Fund the Construction Industries Division annually at the level of the prior year’s annual fee revenue generated or establish CID as the equivalent of an enterprise fund and allow fees paid by the construction industry to be fully put to use for the industry. The competence of all contractors should be known by the license designation they hold. Unlicensed contracting or performance beyond the scope of the license should be found and penalized.

Inspection fees, permit fees and license fees paid by contractors should be used to supply services to contractors. Decreasing CID’s budget causes contractors to pay more and more of the cost of the state’s budget. Fees paid by contractors support the state’s general fund and not the agency that can help or hinder construction projects.

Opponents of regulation say the construction market will take care of itself and control unlicensed and inept contractors. Legislators have the power to spend state money and making CID budgets dependent upon the revenue generated or making CID a stand-alone fund would infringe on a legislator’s power to spend state money.

The construction industry in New Mexico is about 8% of the state economy. The number of jobs created by the construction industry is significant. The state should do everything possible to support the construction industry in New Mexico. Provide protection through licensing for the welfare of the citizens of the state; enact and enforce building standards; and provide timely review and inspection services to contractors so that projects are not unnecessarily delayed. Construction pays for these services—the state must dedicate the resources to provide them.