According to RSA 359-G:4, in every action, the homeowner shall provide service of written notice of claim on the contractor, no later than 60 days before initiating an action against a contractor. The notice of claim shall state that the homeowner asserts a construction defect claim. The notice of claim shall describe the nature of the alleged construction defect and the result of the defect. Moreover, the homeowner shall provide to the contractor any evidence in possession of the homeowner that depicts the nature and cause of the construction defect.
Within 30 days after service of the notice of claim by the homeowner, each contractor that has received the notice of claim shall serve on the homeowner a written response to the claim which:
- Discloses any evidence in the possession of the contractor that depicts the nature and cause of the construction defect;
- Offers to settle the claim by monetary payment, the making of repairs, or a combination of both, without inspection;
- Proposes to inspect the residence that is the subject of the claim; or
- Wholly rejects the claim.
If the contractor fails to respond to the homeowner, wholly rejects the claim, or will neither remedy the alleged construction defect nor settle the claim, the homeowner may immediately bring an action against the contractor for the claims without further notice. If a proposal for inspection is made, the homeowner may provide the contractor and its subcontractors prompt and complete access to the residence to inspect the residence, within 15 days of receiving a contractor’s proposal. If a claim is asserted on behalf of owners of multiple residences, then the contractor shall be entitled to inspect each of the units, with the written consent of the unit owner.
Within 15 days following completion of the inspection, the contractor shall serve on the homeowner:
- A response disclosing any inspection or testing records in the possession of the contractor that depict the nature and cause of the construction defect;
- A written offer to fully or partially remedy the construction defect at no cost to the homeowner includng a description of any additional construction necessary to remedy the defect described in the claim, and an anticipated timetable for the completion of such construction;
- A written offer to settle the claim by monetary payment;
- A written offer including a combination of repairs and monetary payment; or
- A written statement that the contractor will not proceed further to remedy the defect.
If a homeowner accepts a contractor’s offer and the contractor does not proceed to make the monetary payment or remedy the construction defect within the agreed timetable, the homeowner may bring an action against the contractor for the claim without further notice. The homeowner may also file the contractor’s offer and homeowner’s acceptance which will create a rebuttable presumption that a binding and valid settlement agreement has been created and should be enforced by the court or arbitrator. If a homeowner receives a written statement that the contractor will not proceed further to remedy the defect, the homeowner may bring an action against the contractor for the claim without further notice. If the homeowner rejects the offer made by the contractor to remedy the construction defect or to settle the claim by monetary payment or a combination of each, the homeowner may serve written notice of the homeowner’s rejection on the contractor.
Any homeowner accepting the offer of the contractor to remedy a construction defect shall serve the contractor with a written notice of acceptance within a reasonable period of time after receipt of the contractor’s settlement offer, but no later than 30 days after receipt of the offer. The offer shall be deemed rejected, if no response is served upon the contractor within a 30-day period. If a homeowner accepts a contractor’s offer to repair a construction defect, the homeowner shall provide the contractor and its subcontractors prompt and reasonable access to the residence to perform and complete the construction.