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Hiring a Contractor in NH: A Homeowner's Checklist

Updated 2026-10-10 · 7 min read

A step-by-step checklist for hiring a contractor in NH: checking insurance and licenses, contracts, deposits, your right to cancel, liens and red flags.

Why vetting matters more in NH

New Hampshire doesn't have a state license for general or home improvement contractors. The Attorney General's office and the NH Insurance Department both point this out. Certain trades, such as electricians and plumbers, do need a state license (see which contractors need a license). For everyone else, it's up to you to check the contractor out before you sign. The checklist below draws on guidance from NH agencies and the Federal Trade Commission.

1. Find and compare contractors

Ask people you trust for recommendations, and search the company name online along with words like "complaint" or "review," as the FTC suggests.
Look the business up in the NH Attorney General's consumer complaint search. The Bureau notes that having complaints, or none, doesn't by itself show whether a business is sound, so look at how complaints were resolved.
Get more than one written estimate. Each should describe the work, materials, completion date and price. If the bids are far apart, ask why, and don't assume the lowest bid is the best deal.
Check references and look at finished work similar to your project.
If the contractor operates as a company or under a business name, you can look it up in the NH Secretary of State business search and check that the name matches the estimate.
Browse contractors by trade in our directory, or request quotes from up to three local contractors.

2. Verify insurance (and licenses where required)

The NH Insurance Department warns that if an uninsured or underinsured contractor's worker is injured or your property is damaged, you could end up responsible. It also notes that many standard NH homeowners' policies exclude or limit coverage for damage caused by contractors. Its advice:

Ask for a certificate of liability insurance issued directly by the contractor's insurance company or agent, ideally sent to you by the agent. A verbal "we're insured" isn't enough.
Check that the business name matches and the policy dates cover the whole project. A certificate doesn't guarantee coverage, so call the insurer or agent to confirm the policy is active.
Look for commercial general liability coverage that includes products and completed operations. The Department mentions $1 million per occurrence and $2 million aggregate as a commonly recommended minimum, with higher limits for bigger or more complex jobs.
NH law requires employers with one or more employees to carry workers' compensation (RSA 281-A). The Department suggests confirming coverage carefully even if a contractor says they're a sole proprietor, and recommends the free workers' comp verification tool.
Ask whether subcontractors carry insurance too. The Department suggests their coverage be equal to or greater than the main contractor's.
Consider asking to be named as an additional insured, and keep copies of all certificates.
For licensed trades such as electrical, plumbing and gas fitting, check the license with the state's license lookup, which the NH Office of Professional Licensure and Certification links to.

3. Get a written contract

The FTC recommends asking for a written contract even if your state doesn't require one. Make sure every blank space is filled in before you sign. A good contract includes:

The contractor's name, address, phone number and license number if they hold one
A detailed scope of work and materials, including brands and models where it matters
Estimated start and completion dates
The price and payment schedule
Who is responsible for permits and inspections. Usually that's the contractor, and both the FTC and the NH Insurance Department treat a contractor asking you to pull permits as a warning sign (see our building permit guide)
How change orders are approved and priced, and any warranty
Every promise made in conversation
If you sign at home or anywhere other than the seller's place of business, a written statement of your right to cancel (see step 5)

4. Pay smart

Don't pay the whole cost up front, and hold the final payment until the work is finished and you're satisfied (FTC). The FTC notes that some states limit how much a contractor can ask for as a down payment and suggests checking with your state consumer agency. In NH, that's the Attorney General's Consumer Protection Hotline (below). Many homeowners tie payments to completed stages of work rather than dates and pay by check or card so there's a record.

When the AG's office resolved a 2015 case with a contractor who falsely claimed to be licensed and insured, one condition was that he apply customers' prepayments for materials to their specific job (NH DOJ). If you pay a deposit for materials, it's reasonable to ask what it covers and when the materials will arrive.

5. Know your right to cancel

If a seller solicits and makes a sale of $150 or more somewhere other than their permanent place of business, such as your home, NH's home solicitation law (RSA 361-B) generally lets you cancel. The deadline is midnight of the third business day after the transaction. You cancel by written notice mailed to the seller (the law suggests certified or registered mail). The contract must include a notice of that right in bold type next to the space for your signature (RSA 361-B:2).

If you cancel, the law says the seller must return your payments within 15 days. If the seller already did work that physically altered your property during the cancellation period, the law still entitles you to a refund of what you paid, or in some cases you can ask for the property to be restored instead.

The federal FTC Cooling-Off Rule gives a similar three-business-day right for many sales made at your home ($25 or more). It doesn't cover sales needed to meet an emergency, or repairs or maintenance on your personal property that you asked the seller to come and do (extra items you buy beyond that request are covered).

6. Understand mechanic's liens

Under NH's lien law (RSA 447), people who supply labor or materials to build or repair a structure can have a lien on the building and land. That includes your contractor, and in some cases subcontractors and suppliers. Unless they're paid, the lien lasts 120 days after the work or materials are provided, and the claimant can secure it by attaching the property during that time.

A subcontractor or supplier can get lien rights by sending you written notice. If they send it before doing the work, and then send an account of what's owed at least every 30 days, the law expects you to hold back enough from your payments to the general contractor to cover their claims. If the notice comes later, their lien is generally limited to what you still owe the contractor at that point. In practice, many homeowners ask for written confirmation, often called a lien waiver or release, that subcontractors and suppliers have been paid before making large payments. For anything beyond the basics, talk to a NH attorney.

Red flags to watch for

These warning signs come from the FTC and the NH Insurance Department:

They knock on your door saying they're "in the area" or have materials left over from another job
Pressure to decide on the spot
Cash only, or payment in full up front
Asking you to get the permits yourself
Refusing to give proof of insurance, or saying insurance isn't necessary
Pushing you to borrow from a lender they know instead of shopping around

If something goes wrong

Raise the problem in writing with the contractor first, and keep copies of your contract, payments and photos. NH's Consumer Protection Act (RSA 358-A) bans unfair or deceptive business practices, and the AG's Consumer Protection and Antitrust Bureau takes complaints. It requires complaints in writing on its consumer complaint form, and it notes that it can't represent you or give legal advice. You can reach the Consumer Protection Hotline at 1-888-468-4454 or (603) 271-3641 on weekdays (as of October 2026). For insurance questions, the NH Insurance Department's Consumer Services line is (603) 271-2261.

For money disputes, NH's small claims process in the district courts handles claims of up to $10,000 that don't involve real estate (RSA 503:1). The AG's office has a plain-English small claims overview.

This checklist is general information, not legal advice. Laws and agency procedures change, so confirm details with the agency involved or a NH attorney.