New Mexico Contractor Licenses: Updated Requirements Guide
New Mexico licenses contractors at the state level through the Construction Industries Division (CID) of the New Mexico Regulation and Licensing Department. Whether you build homes, wire electrical systems, install HVAC, or focus on fire protection specialties, you’ll work within CID’s statewide classifications and exam process administered by PSI.
This guide explains how New Mexico’s statewide framework works, what experience and exams are required, and what to expect in fees, bonds, and renewals. We highlight several representative licenses and authorities for New Mexico below; this guide is updated periodically as additional details are curated in response to reader requests.
If you are just getting oriented, remember that New Mexico’s Contractor’s Business and Law exam is required for every contractor classification in addition to the trade exam. A qualifying party with documented journeyman-level experience anchors each license, and surety bonding and liability insurance are standard prerequisites before a license can be issued.
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Overview of New Mexico Contractor Licensing
The New Mexico Regulation and Licensing Department – Construction Industries Division (CID) regulates construction-related contracting statewide, including general building, electrical, mechanical/HVAC, plumbing, elevators/escalators, and LP gas. All contractor licensing and examination services are provided through PSI under CID’s authority. If your scope of work is construction-related, state law requires the correct classification on your license to cover the work performed.
CID’s framework pairs each contractor license with a qualifying party (QP) who meets minimum, recent journeyman-level experience in the applicable trade. For most major commercial classifications, four years (8,000 hours) of experience within the prior ten years is the benchmark, while some residential classifications accept two years (4,000 hours). Every contractor classification also requires passing the New Mexico Contractor’s Business and Law exam in addition to the trade exam, both administered by PSI with a 75% minimum passing score.
New Mexico contractor licenses are issued by the state rather than by cities or counties. Local jurisdictions still oversee permitting, plan review, and inspections, so always coordinate with the local building department for permitting and code compliance once your state license is issued.
Browse all New Mexico contractor license practice tests →
Electrician Licenses in New Mexico
New Mexico regulates electrical work with 4 license types. Electrical contractor and journeyman-level classifications require a qualifying party with documented, recent experience and successful passage of the PSI-administered trade exam and the New Mexico Contractor’s Business and Law exam.
EE-98 Electrical Contractor (Residential and Commercial)
Classification: Contractor | Level: State | Exam Provider: PSI
Authority: New Mexico Regulation and Licensing Department – CID — rld.nm.gov/construction-industries
Requirements
- Experience (Qualifying Party): Four years (8,000 hours) of journeyman-level electrical experience within the past ten years.
- Education: Experience-based; no specific formal degree requirement.
- Age: 18+ for qualifying parties and contractor applicants.
- Exams: Trade-specific EE-98 Electrical Contractor exam and the New Mexico Contractor’s Business and Law exam; both require a 75% minimum to pass. Business and Law is a 50-question, open-book exam with a 2-hour time limit (PSI).
Fees
- Application: Approximately $30 non-refundable application fee plus $6 qualifying party certificate fee.
- Exam: Set by PSI; trade exam fees vary by classification. The Business and Law exam fee is commonly cited near $68.88 (verify current amounts with PSI).
- License: Typically $150 or $300 depending on class; paid with the PSI application packet.
Insurance and Bonding
- Surety Bond: $10,000 contractor license bond in the business name.
- Liability Insurance: General liability coverage appropriate for electrical operations (minimums set by CID; confirm current requirements).
Renewal
- Term: Commonly three years from the issue date.
Confirm current fee amounts, liability insurance minimums, and renewal specifics with CID or PSI before applying.
ER-1 Residential Wiring (Residential Wireman)
Classification: Journeyman/Residential Wireman | Level: State | Exam Provider: PSI
Authority: New Mexico Regulation and Licensing Department – CID — rld.nm.gov/construction-industries
Requirements
- Experience (Qualifying Party): Two years (4,000 hours) of residential electrical wiring experience within the past ten years.
- Education: Experience-based; no formal degree required.
- Age: 18+ for qualifying parties.
- Exams: Trade-specific ER-1 Residential Wiring exam plus the New Mexico Contractor’s Business and Law exam (PSI). Passing score is 75% on each; Business and Law is open-book, 50 questions, 2 hours.
Fees
- Application: $30 application fee plus $6 certificate fee per qualifying party.
- Exam: Fees set by PSI; Business and Law commonly cited near $68.88.
- License: Typically $150 or $300 depending on license class.
Insurance and Bonding
- Surety Bond: $10,000 contractor license bond.
- Liability Insurance: General liability appropriate to electrical work; confirm current minimums with CID.
Renewal
- Term: Typically a three-year license period.
Confirm exact exam fees, current insurance minimums, and renewal requirements with CID or PSI prior to applying.
Source: New Mexico Business Navigator – Construction License
Journeyman Electrician
Classification: Journeyman | Level: State | Exam Provider: PSI
Authority: New Mexico Regulation and Licensing Department – CID — rld.nm.gov/construction-industries
Requirements
- Experience: Generally two to four years of recent, journeyman-level electrical experience (commercial/specialized scopes often require four years).
- Education: Experience-based; no formal degree specified.
- Age/Eligibility: 18+, valid ID, SSN/ITIN, and compliant with general applicant conditions.
- Exams: Journeyman Electrical trade exam plus the New Mexico Contractor’s Business and Law exam; both require a 75% passing score (administered by PSI).
Fees
- Application: $30 application fee plus $6 qualifying party certificate fee.
- Exam: Trade exam fee set by PSI; Business and Law commonly cited near $68.88.
- License: Typically $150–$300 depending on classification.
Insurance and Bonding
- Contractor entities employing journeyman electricians must hold the $10,000 bond and appropriate liability insurance.
Renewal
- Term: Common three-year cycle for contractor-related credentials.
Confirm current exam fees, insurance minimums, and renewal timing with CID/PSI before applying.
Residential Electrical Contractor
Classification: Contractor | Level: State | Exam Provider: PSI
Authority: New Mexico Regulation and Licensing Department – CID — rld.nm.gov/construction-industries
Requirements
- Experience (Qualifying Party): Typically at least two years (4,000 hours) of relevant residential electrical experience within the previous ten years.
- Education: Experience-based; no formal degree specified.
- Age: 18+, valid ID, SSN/ITIN.
- Exams: Residential electrical trade exam plus the New Mexico Contractor’s Business and Law exam (PSI). 75% minimum required on each.
Fees
- Application: $30 plus $6 qualifying party certificate fee.
- Exam: Fees set by PSI; Business and Law commonly cited near $68.88.
- License: Generally $150–$300 depending on license class.
Insurance and Bonding
- Surety Bond: $10,000 contractor license bond.
- Liability Insurance: General liability for residential electrical contracting; confirm current minimums with CID.
Renewal
- Term: Commonly three years.
Confirm exact fee amounts, insurance minimums, and renewal details with CID/PSI before submitting your packet.
Plumbing Licenses in New Mexico
New Mexico regulates plumbing work with 2 license types. Both require a qualifying party with documented journeyman-level experience, passage of a PSI trade exam, and the New Mexico Contractor’s Business and Law exam.
MM-1 Plumbing
Classification: Contractor | Level: State | Exam Provider: PSI
Authority: New Mexico Regulation and Licensing Department – CID — rld.nm.gov/construction-industries
Requirements
- Experience (Qualifying Party): Four years (8,000 hours) of journeyman-level plumbing experience within the past ten years.
- Education: Experience-based; no formal degree required.
- Age: 18+ and meeting general applicant criteria.
- Exams: MM-1 Plumbing trade exam and the New Mexico Contractor’s Business and Law exam (PSI). Passing score is 75% on each; Business and Law is open-book, 50 questions, 2 hours.
Fees
- Application: $30 plus $6 qualifying party certificate fee.
- Exam: Set by PSI; all PSI exams require scheduling and a 75% passing score; Business and Law commonly cited near $68.88.
- License: Typically $150 or $300 depending on license class.
Insurance and Bonding
- Surety Bond: $10,000 contractor license bond.
- Liability Insurance: General liability appropriate for plumbing operations; confirm current minimums with CID.
Renewal
- Term: Typically three years.
Verify current exam fees, insurance minimums, and renewal details with CID/PSI prior to submission.
Source: New Mexico Business Navigator – Construction License
MM-2 Natural Gas Fitting
Classification: Contractor | Level: State | Exam Provider: PSI
Authority: New Mexico Regulation and Licensing Department – CID — rld.nm.gov/construction-industries
Requirements
- Experience (Qualifying Party): Four years (8,000 hours) of journeyman-level natural gas fitting experience within the past ten years.
- Education: Experience-based.
- Age: 18+ and meeting general applicant standards.
- Exams: MM-2 Natural Gas Fitting trade exam and the New Mexico Contractor’s Business and Law exam (PSI); 75% minimum to pass each.
Fees
- Application: $30 plus $6 certificate fee per qualifying party.
- Exam: Set by PSI; Business and Law commonly cited near $68.88.
- License: Generally $150–$300 depending on class.
Insurance and Bonding
- Surety Bond: $10,000 contractor license bond.
- Liability Insurance: General liability suitable for gas fitting operations; confirm current minimums with CID.
Renewal
- Term: Common three-year cycle.
Confirm exact exam fees, insurance minimums, and renewal details with CID/PSI before applying.
HVAC Licenses in New Mexico
New Mexico regulates HVAC contractors with 2 license types covering HVAC-only and broader mechanical scopes. Each requires a qualifying party with recent journeyman-level experience, passage of a PSI trade exam, and the New Mexico Contractor’s Business and Law exam.
MM-3 HVAC
Classification: Contractor | Level: State | Exam Provider: PSI
Authority: New Mexico Regulation and Licensing Department – CID — rld.nm.gov/construction-industries
Requirements
- Experience (Qualifying Party): Four years (8,000 hours) of journeyman-level HVAC experience within the past ten years.
- Education: Experience-based; no formal degree required.
- Age: 18+ and meeting general applicant criteria.
- Exams: MM-3 HVAC trade exam plus the New Mexico Contractor’s Business and Law exam (PSI). 75% minimum required on each; Business and Law is open-book, 50 questions, 2 hours.
Fees
- Application: $30 application fee and $6 certificate fee per qualifying party.
- Exam: Set by PSI; Business and Law is commonly cited near $68.88.
- License: Typically $150–$300 depending on class.
Insurance and Bonding
- Surety Bond: $10,000 contractor license bond.
- Liability Insurance: General liability appropriate for HVAC work; confirm current minimums with CID.
Renewal
- Term: Typically three years.
Confirm current exam fee amounts, liability minimums, and renewal specifics with CID/PSI prior to application.
MM-98 Mechanical
Classification: Contractor | Level: State | Exam Provider: PSI
Authority: New Mexico Regulation and Licensing Department – CID — rld.nm.gov/construction-industries
Requirements
- Experience (Qualifying Party): Four years (8,000 hours) of journeyman-level mechanical experience (e.g., HVAC, boilers, related systems) within the past ten years.
- Education: Experience-based qualification; no specific degree required.
- Age: 18+.
- Exams: MM-98 Mechanical trade exam and the New Mexico Contractor’s Business and Law exam (PSI), each requiring a 75% passing score.
Fees
- Application: $30 plus $6 qualifying party certificate fee.
- Exam: Set by PSI; Business and Law commonly cited near $68.88.
- License: For major classifications, a $300 license fee is commonly cited; confirm current MM-98 fee with CID.
Insurance and Bonding
- Surety Bond: $10,000 contractor license bond.
- Liability Insurance: General liability for mechanical contracting; confirm current minimums with CID.
Renewal
- Term: Typically three years.
Confirm current exam fees, license fee amounts, insurance minimums, and renewal details with CID/PSI before applying.
Source: New Mexico Business Navigator – Construction License
General Contractor Licenses in New Mexico
New Mexico general contractor licensing includes 2 types that cover residential and broader building work. Both require a qualifying party, passage of the appropriate PSI trade exam, and the New Mexico Contractor’s Business and Law exam.
GB-2 Residential Building Contractor
Classification: Contractor | Level: State | Exam Provider: PSI
Authority: New Mexico Regulation and Licensing Department – CID — rld.nm.gov/construction-industries
Requirements
- Experience (Qualifying Party): Two years (4,000 hours) of journeyman-level residential building experience within the past ten years.
- Education: Experience-based; no formal degree required.
- Age/Eligibility: 18+, valid ID, SSN/ITIN, and compliant with general applicant conditions.
- Exams: GB-2 Residential Contractor trade exam and the New Mexico Contractor’s Business and Law exam (PSI). GB-2 is open-book with roughly 80 questions and about a 4-hour time limit; both exams require a 75% passing score.
Fees
- Application: $30 non-refundable application fee plus $6 qualifying party certificate fee.
- Exam: GB-2 trade exam fee is commonly cited around $134.53; Business and Law commonly cited around $68.88 (verify current PSI fee schedule).
- License: $150 is commonly cited for some residential classifications; confirm current GB-2 fee with CID.
Insurance and Bonding
- Surety Bond: $10,000 contractor license bond.
- Liability Insurance: General liability appropriate for residential building; confirm current minimums with CID.
Renewal
- Term: Common three-year validity from issue date.
Confirm current exam fees, exact license fee amount, liability minimums, and renewal timing with CID/PSI before applying.
GB-98 General Building Contractor
Classification: Contractor | Level: State | Exam Provider: PSI
Authority: New Mexico Regulation and Licensing Department – CID — rld.nm.gov/construction-industries
Requirements
- Experience (Qualifying Party): Four years (8,000 hours) of journeyman-level general building experience within the past ten years.
- Education: Experience-based; no formal degree required.
- Age/Eligibility: 18+ and meeting general applicant criteria.
- Exams: GB-98 General Building Contractor exam (which includes GB-2 content) and the New Mexico Contractor’s Business and Law exam (PSI). GB-98 is open-book, typically around 100 questions with about a 5-hour time limit; 75% passing score for both exams.
Fees
- Application: $30 plus $6 qualifying party certificate fee.
- Exam: Commonly cited GB-98 exam fee near $269.06 (includes GB-2 content); Business and Law commonly cited around $68.88 (verify with PSI).
- License: $300 is commonly cited for major classifications like GB-98; confirm current amount with CID.
Insurance and Bonding
- Surety Bond: $10,000 contractor license bond.
- Liability Insurance: General liability appropriate for residential and commercial building work; confirm current minimums with CID.
Renewal
- Term: Typically three years.
Confirm current exam fees, exact license fee amount, liability minimums, and renewal timing with CID/PSI before applying.
Source: New Mexico Business Navigator – Construction License
Roofing Licenses in New Mexico
Roofing work in New Mexico is regulated within the state’s contractor licensing system administered by CID. Roofing scopes are typically performed under general building classifications (such as GB-2 or GB-98) or applicable building specialties rather than a separate roofing-only contractor license.
If roofing is your primary scope, request a classification determination or consult CID’s application guidance to ensure your license classification fully covers the work you intend to perform (e.g., residential versus commercial roofing, reroofing versus structural work). As with all contractor classifications, expect to designate a qualifying party with sufficient recent experience, pass required exams, and secure a $10,000 bond and appropriate liability insurance.
For current classification options covering roofing scopes, contact CID or review the application resources on the official site noted below.
Specialty Trade Licenses in New Mexico
New Mexico regulates specialty trades with 4 license types highlighted here, including the statewide Business and Law exam required for every contractor classification and several mechanical/fire protection specialties. Each specialty contractor license requires a qualifying party with recent journeyman-level experience, passage of a PSI-administered trade exam, and the New Mexico Contractor’s Business and Law exam.
New Mexico Contractor’s Business and Law Exam
Classification: Business & Law (exam requirement for all contractor licenses) | Level: State | Exam Provider: PSI
Authority: New Mexico Regulation and Licensing Department – CID — rld.nm.gov/construction-industries
About the Exam
- Format: 50 multiple-choice questions, open-book, 2-hour time limit.
- Passing Score: 75% (administered by PSI).
- Scope: Business management, licensing, estimating and bidding, contracts, project management, risk management and safety, labor laws, liens, tax, and financial management.
- Who must take it: Required in addition to the trade exam for every contractor classification.
Fees and Validity
- Exam Fee: Commonly cited around $68.88 (verify current PSI fee schedule).
- Score Validity: Exam results are generally valid for 12 months for new qualifying parties.
Confirm current scheduling procedures, exam fees, and score validity windows with PSI/CID before testing.
MM-4 Process Piping
Classification: Specialty Contractor | Level: State | Exam Provider: PSI
Authority: New Mexico Regulation and Licensing Department – CID — rld.nm.gov/construction-industries
Requirements
- Experience (Qualifying Party): Four years (8,000 hours) of journeyman-level process piping experience within the past ten years.
- Education: Experience-based.
- Age: 18+.
- Exams: MM-4 Process Piping trade exam and the New Mexico Contractor’s Business and Law exam (PSI); 75% passing score for each.
Fees
- Application: $30 plus $6 qualifying party certificate fee.
- Exam: Trade exam fee set by PSI; Business and Law commonly cited near $68.88.
- License: Typically $150–$300 depending on classification.
Insurance and Bonding
- Surety Bond: $10,000 contractor license bond.
- Liability Insurance: General liability suitable for process piping; confirm current minimums with CID.
Renewal
- Term: Common three-year cycle.
Confirm current exam fees, insurance minimums, and renewal details with CID/PSI before applying.
Source: New Mexico Business Navigator – Construction License
MS-12 Fire Sprinklers
Classification: Specialty Contractor | Level: State | Exam Provider: PSI
Authority: New Mexico Regulation and Licensing Department – CID — rld.nm.gov/construction-industries
Requirements
- Experience (Qualifying Party): Four years (8,000 hours) of journeyman-level fire sprinkler installation experience within the past ten years.
- Education: Experience-based.
- Age: 18+.
- Exams: MS-12 Fire Sprinklers trade exam and the New Mexico Contractor’s Business and Law exam (PSI); 75% minimum to pass each.
Fees
- Application: $30 plus $6 qualifying party certificate fee.
- Exam: Set by PSI; Business and Law commonly cited near $68.88.
- License: Typically $150–$300 depending on class.
Insurance and Bonding
- Surety Bond: $10,000 contractor license bond.
- Liability Insurance: General liability appropriate to fire protection operations; confirm current minimums with CID.
Renewal
- Term: Typically three years.
Confirm exam fees, license fee amounts, insurance minimums, and renewal details with CID/PSI before applying.
MS-14 Dry Chemical Fire Protection
Classification: Specialty Contractor | Level: State | Exam Provider: PSI
Authority: New Mexico Regulation and Licensing Department – CID — rld.nm.gov/construction-industries
Requirements
- Experience (Qualifying Party): Four years (8,000 hours) of journeyman-level dry chemical fire protection experience within the past ten years.
- Education: Experience-based.
- Age: 18+.
- Exams: MS-14 Dry Chemical Fire Protection trade exam and the New Mexico Contractor’s Business and Law exam (PSI); 75% passing score for each.
Fees
- Application: $30 application fee plus $6 certificate fee per qualifying party.
- Exam: Trade exam fee set by PSI; Business and Law commonly cited near $68.88.
- License: Typically $150–$300 depending on classification.
Insurance and Bonding
- Surety Bond: $10,000 contractor license bond.
- Liability Insurance: General liability appropriate to fire protection contracting; confirm current minimums with CID.
Renewal
- Term: Typically three years.
Confirm exam fees, insurance minimums, and renewal specifics with CID/PSI before you apply.
Source: New Mexico Business Navigator – Construction License
Application Process
- Identify your classification(s): Determine the correct CID classification(s) that match your scope of work (general building, electrical, mechanical/HVAC, plumbing, or specialty). When in doubt, request a classification determination.
- Designate a qualifying party (QP): Document the QP’s journeyman-level experience within the required time window (generally two years for certain residential scopes and four years for major or commercial scopes) and complete the Qualifying Party certificate and experience verification.
- Obtain exam approval and schedule with PSI: Secure pre-approval as needed, then schedule and sit for both the PSI trade exam(s) corresponding to each classification and the New Mexico Contractor’s Business and Law exam.
- Pass required exams: Achieve at least a 75% score on each exam. Exam results are generally valid for 12 months for first-time qualifying parties.
- Secure bond and insurance: Obtain a $10,000 contractor license surety bond and general liability insurance in the business name that meets CID requirements.
- Register your business and tax ID: Obtain a New Mexico tax identification number and, if applicable, register your business entity (corporation, LLC, partnership) with the New Mexico Secretary of State.
- Assemble the application packet: Include classification determination (if issued), QP documentation, passing score reports, proof of bond and insurance, NM tax ID, business registration (if applicable), and required fees.
- Submit to PSI for processing: Mail the completed packet and original bond to PSI – New Mexico Construction Licensing Services. PSI processes on behalf of CID and issues the license upon approval.
- Use your license: Display the license number on contracts, bids, advertisements, and vehicles as required by statute.
Timeline: Exam approval and scheduling can take several weeks. Application processing must be finalized within six months of initial submission, and exam results are valid for 12 months. Many applicants complete the overall process in about 2–3 months, depending on exam scheduling and how quickly documentation is assembled.
Frequently Asked Questions
How long does it take to get a contractor license in New Mexico?
Plan on several weeks for exam approval and scheduling, plus time for PSI processing of your application packet. Many applicants complete everything in roughly 2–3 months, depending on exam availability and how quickly they can assemble bond, insurance, and business registrations.
Can I transfer my license from another state to New Mexico?
New Mexico emphasizes its own experience and exam standards rather than broad reciprocity. Expect to meet CID’s qualifying party experience requirements and pass the New Mexico Contractor’s Business and Law exam and the applicable PSI trade exam. For any trade-specific recognition (e.g., NASCLA-accepted electrical content), confirm directly with CID.
What happens if I fail the exam?
PSI manages scheduling and retakes. Retake availability, waiting periods, and fees are administered by PSI under CID’s direction. Review PSI’s current New Mexico candidate information and schedule accordingly.
Do I need insurance?
Yes. A $10,000 contractor license surety bond and general liability insurance in the business name are standard requirements for contractor classifications. Confirm current liability minimums and any workers’ compensation requirements with CID and your insurer.
How do I renew my license?
New Mexico contractor licenses commonly renew on a three-year cycle from the date of issuance. Confirm your renewal window, any continuing obligations, and current fees with CID prior to expiration.
Do cities or counties also issue contractor licenses in New Mexico?
No. Contractor licenses are issued statewide by CID. Local jurisdictions handle permitting, plan review, and inspections; coordinate those requirements with the city or county where you will perform the work.
Where can I find practice tests for New Mexico exams?
We offer comprehensive PDF study guides typically with 1,500–2,500 questions, complete answer keys, and reference locators pointing to exact code sections. Study offline at your own pace; no time or use limits. Browse New Mexico contractor practice tests.
New Mexico · Practice tests
New Mexico contractor license practice tests
We don’t publish New Mexico practice tests yet, but we add new tests regularly. Contact us with the license you’re studying for and we’ll build it.
Related Official Resources
Official Sources for Further Details:
-
New Mexico Regulation and Licensing Department – Construction Industries Division (CID), Apply for a Construction Industries License
https://www.rld.nm.gov/construction-industries/apply-for-a-construction-industries-license/
Official Board Site | Accessed: 2026-08-02 -
New Mexico CID Bureaus – Licensing and Regulation
https://www.rld.nm.gov/construction-industries/find-a-bureau/bureaus/
Official Board Site | Accessed: 2026-08-02 -
New Mexico Business Navigator – Construction License
https://biz.nm.gov/business-navigator/licenses-and-permits/construction-license/
Official Board Site | Accessed: 2026-08-02 -
New Mexico Administrative Code 14.6.3 NMAC – Contractor License Requirements
https://www.rld.nm.gov/wp-content/uploads/2022/03/14.6.3_Contractor-Lic-Require_APPROVEDdb.pdf
State Statute/Rule | Accessed: 2026-08-02 -
New Mexico Statutes Section 60-13-12 – Contractor’s license required
https://law.justia.com/codes/new-mexico/chapter-60/article-13/section-60-13-12/
State Statute | Accessed: 2026-08-02 -
NASCLA – New Mexico Construction Industries Division (Electrical Exams Participating State Agency)
https://www.nascla.org/electrical-exams-participating-state-agencies/new-mexico-construction-industries-division
Exam Provider | Accessed: 2026-08-02
Important Disclaimer
Information Currency: This guide reflects licensing information as available in 2026. Licensing requirements are subject to change without notice. Always verify current requirements with official sources.
Official Source: For current information, contact the New Mexico Regulation and Licensing Department – Construction Industries Division (CID):
- Website: https://www.rld.nm.gov/construction-industries/
- Phone: (505) 476-4770
No Legal Advice: This guide provides general information only. Consult the licensing board or a qualified professional for guidance specific to your situation.
State vs. Local: Contractor licensing is issued statewide by CID. Local jurisdictions may have separate permitting and inspection requirements for your projects.