Quick Facts:

  • Regulating Agency: No central state licensing board for general contractors
  • Required Bond Amount: Varies by municipality and project type ($1,000-$50,000)
  • Cost Range: $100-$500 annually (depending on credit)
  • Required For: Right-of-way work, street excavation, and certain municipal contractor registrations

What Is a New Hampshire Contractor License Bond?

A contractor license bond in New Hampshire is a financial guarantee that ensures contractors will comply with applicable laws, regulations, and fulfill their obligations to customers. Unlike many states, New Hampshire doesn’t have state-level bonding requirements for general contractors, but municipalities and specific project types often require bonds. These bonds protect consumers and the public by providing compensation if a contractor violates licensing laws, building codes, or fails to complete work properly.

Who Regulates New Hampshire Construction Contractor Licensing?

New Hampshire has a decentralized approach to contractor regulation. The state does not license general contractors at the state level. However, certain specialized trades are regulated by specific boards:

  • Electricians: Licensed by the New Hampshire Electricians’ Board under the Office of Professional Licensure and Certification (OPLC)
  • Plumbers: Licensed through the Mechanical Safety and Licensing Board
  • Municipalities: Individual cities and towns may have their own registration or permit requirements

Official site: New Hampshire Office of Professional Licensure and Certification

What Bond Amount Is Required in New Hampshire?

Since there is no state-level contractor license, bond amounts vary:

  • Right-of-Way/Highway Work: $1,000 to $50,000 (set by NH Department of Transportation)
  • Municipal Requirements: Typically $4,000 to $10,000 for city contractor registrations or permit bonds
  • Manchester: $5,000 performance bond and $10,000 payment bond for street excavation
  • Portsmouth: Excavation contractors may need bonds (amounts determined by city)
  • Eidelweiss Village District: $4,000 right-of-way bond

Bond requirements are project-specific and location-dependent rather than universal across the state.

How Much Does a Contractor Bond Cost in New Hampshire?

Contractors pay an annual premium rather than the full bond amount. Typical costs range from:

  • $100-$250 for a $5,000 bond
  • $200-$500 for a $10,000 bond
  • $500-$2,500 for larger bonds (e.g., $50,000)

Factors affecting bond cost include:

  • Credit score: Higher credit scores typically yield lower rates
  • Business experience: Established contractors with good history pose less risk
  • Financial strength: Some bonds require review of business financials
  • Bond amount: Larger bonds may have different rate structures

Who Needs a Contractor License Bond in New Hampshire?

Since New Hampshire doesn’t license general contractors at the state level, bond requirements are specific to:

  • Contractors working on public highways or rights-of-way (required by NH Department of Transportation)
  • Street excavation contractors in cities like Manchester and Portsmouth
  • Utility installers affecting public streets or sidewalks
  • Contractors registered in specific municipalities with bonding requirements
  • Drainlayers and sewer installers in many towns

General building contractors working on private property typically don’t need bonds unless required by local ordinance.

What Other Contractor Bonds Are Required in New Hampshire?

In addition to contractor license bonds, contractors may encounter:

  • Right-of-Way Work Bonds: Required for construction on publicly owned roads
  • Street Opening Bonds: For excavation in city streets
  • Restoration Bonds: To ensure proper repair of disturbed public property
  • Demolition Bonds: Some municipalities require these before issuing demolition permits
  • Performance and Payment Bonds: Often required for public projects (different from license bonds)

Contractors should also maintain adequate liability insurance, which is often required alongside bonding.

How Does ContractorNerd’s Application Process Work?

Getting your New Hampshire contractor bond is simple:

  1. Request a quote through our online system
  2. Provide basic information about your business and the bond you need
  3. Receive your quote based on your credit and business profile
  4. Complete payment online or by phone
  5. Receive your bond electronically or by mail

The process is streamlined and can often be completed in minutes for smaller bonds.

How Quickly Can I Purchase a Bond?

Many New Hampshire contractor bonds can be issued instantly online after application approval. For standard bond amounts under $10,000, you can often receive your bond the same day you apply. Even larger bonds can typically be processed within 1-2 business days.

Who Files the Bond With the NH Once It Is Purchased?

After receiving your bond, you must submit it to the entity that required it (city department, NHDOT, etc.). For example:

  • For Manchester street excavation bonds, you’ll file with the Department of Public Works
  • For NHDOT highway bonds, you’ll include it with your permit application
  • For municipal contractor registration bonds, you’ll submit it to the local building department

While you’re responsible for filing, our partner can provide guidance on the proper filing procedures for your specific bond.

How Are Claims Handled on a New Hampshire Contractor Bond?

If a contractor fails to comply with regulations or fulfill obligations, a claim may be filed against their bond:

  1. A claim is submitted to the surety by the harmed party (customer or government entity)
  2. The surety investigates the claim for validity
  3. If valid, the surety pays the claim up to the bond amount
  4. The contractor must then reimburse the surety for the claim amount

This process protects the public while holding contractors accountable for their work and business practices.

Frequently Asked Questions (FAQ)

Can I get a bond with bad credit? Yes, but premiums will likely be higher. Even contractors with credit challenges can obtain bonds in New Hampshire, typically paying rates of 5-10% of the bond amount.

What happens if I operate without required bonds? Operating without required bonds can result in permit denials, stop-work orders, fines, and potential legal issues. It may also prevent you from working on certain projects, particularly those involving public property.

How do I renew my bond? Most contractor bonds in New Hampshire require annual renewal. You’ll receive a renewal notice before expiration and will need to pay the premium for another term. Some bonds are “continuous until canceled,” requiring annual premium payments to maintain coverage.

Is a contractor bond the same as insurance? No. While both provide protection, bonds protect clients and the public from contractor failures, while insurance protects the contractor from losses. Bonds require reimbursement for any claims paid, whereas insurance typically doesn’t require repayment after a claim.

Ready to Get Your New Hampshire Contractor License Bond?

Apply Now for an instant quote and secure your bond today. Our streamlined process makes getting bonded quick and hassle-free, allowing you to focus on your business.