In Oregon, contractors need to get licensed and get a surety bond. Keep reading to find out how to do just that.
Getting an Oregon contractors’ license
The Oregon Construction Contractors Board licenses professionals in the state; most any type of contractor needs the license. Licenses are needed for electrical, roofing, heating, concrete, and many other kinds of contractors—if you perform any kind of home improvement for compensation, you most likely need this license.
First, you need to decide if you’d like to work on commercial or residential projects. If you choose to be licensed as a commercial contractor and later want to bid on a residential project, or vice versa, you’ll need to apply for the other endorsement type. Next, you’ll need to complete at least 16 hours of approved training and pass the exam—you must apply for your Oregon contractor’s license within two years of passing the exam. Register your corporation, LLC, or DBA with the Secretary of State, and obtain general liability insurance in the correct amount ranging from $100,000 to $2,000,000 per occurrence. If you’re hiring employees, you will need workers’ compensation insurance as well.
Finally, fill out an application for either the residential, commercial, or dual license, and pay the $225 two-year license fee. You can submit your application, along with your bond, proof of insurance, and fee, either in person or via mail.
Mail to:
P.O. Box 14140
Salem, OR 97309-5052
Deliver in person to:
201 High St. SE
Ste. 600
Salem, OR 97301-3416
Why do contractors need a bond?
Construction is a high-risk business, and surety bonds help to protect clientele and anyone the contractor works with. Should the contractor fail to pay a bill, wages, or fail to complete a project according to their contract, the bond provides a means for those who suffer financial damage to seek reimbursement.
Oregon contractors’ surety bond amounts depend on the type of license they apply for. Residential contractors’ bond amounts are as follows:
- General contractor�$20,000
- Specialty contractor�$15,000
- Limited contractor�$10,000
- Developer�$20,000
- Home services contractor�$10,000
- Locksmith services contractor�$10,000
- Home inspector services contractor�$10,000
- Home performance score contractor�$10,000
Commercial contractors’ bond amounts are generally a bit higher:
- General contractor level 1�$75,000
- General contractor level 2�$20,000
- Specialty contractor level 1�$50,000
- Speciality contractor level 2�$20,000
- Developer�$20,000
Make sure your bond is issued on the correct form, and submit the original bond, NOT a copy. Contractors working on public works projects totaling $100,000 or more need to submit a $30,000 Public Works surety bond before starting the project.