What is an Oregon Contractor License Bond?
Oregon has a state level surety bond requirement for all licensed contractors before the Oregon Construction Contractors Board (OCCB) will issue a license.
This surety bond, called a contractor license bond, is a type of insurance contract required for the protection of the Oregon public and project owners. A contractor license bond acts as a financial guarantee that you'll do two things:
- Follow all Oregon building codes and regulations
- Follow through on your contracting obligations to your customers
When you purchase a contractor license surety bond, you're making this commitment to the Oregon Construction Contractor Board and to your customers.
Get Your Oregon Contractor Bond
Bonds up to $20,000
1-Year Bond Starts at $100.00
1.0% of the Bond Amount
$55,000 Bond
Multi-Year Options May be Available
$80,000 Bond
Multi-Year Options May be Available
$30,000 Bond
Bonds up to $25,000
1-Year Bond Starts at $100.00
1.0%-1.8% of the Bond Amount
2-Year Bond Starts at $175.00
1.0%-1.8% of the Bond Amount
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If you prefer you can watch our video about the Oregon contractor license bonds.
Who Is Required To Purchase an Oregon Contractor Bond?
Oregon has the following three main license classifications, Oregon refers to as endorsements:
- Commercial
- Residential
- Restricted Residential
Every endorsement is required to purchase a surety bond, but each endorsement and license type has a specific bond amount we'll go over in the next section.
The Commercial endorsements are:
- Commercial General Level 1
- Commercial General Level 2
- Commercial Specialty Level 1
- Commercial Specialty Level 2
- Commercial Developer
The Residential endorsements are:
- Residential General
- Residential Specialty
- Residential Limited
- Residential Developer
The Restricted Residential endorsements are:
- Home Services
- Residential Locksmith Services
- Home Inspector Services
- Home Energy Performance Score
- Residential Restoration
Again, every contractor endorsement or license is required to purchase a surety bond as part of the licensing process.
The Oregon Contractor Bond Amounts
The bond amounts are set by the Oregon Construction Contractors Board (OCCB). Here are the bond amounts for each license endorsement.
Commercial Endorsements
| Bond Type | Bond Amount |
|---|---|
| Commercial General Level 1 | $80,000 |
| Commercial General Level 2 | $25,000 |
| Commercial Specialty Level 1 | $55,000 |
| Commercial Specialty Level 2 | $25,000 |
| Commercial Developer | $25,000 |
Residential Endorsements
| Bond Type | Bond Amount |
|---|---|
| Residential General | $25,000 |
| Residential Specialty | $20,000 |
| Residential Limited | $15,000 |
| Residential Developer | $25,000 |
Restricted Residential Endorsements
| Bond Type | Bond Amount |
|---|---|
| Home Services | $15,000 |
| Residential Locksmith Services | $15,000 |
| Home Inspector Services | $15,000 |
| Home Energy Performance Score | $15,000 |
| Residential Restoration | $15,000 |
Why Are The Bond Amounts Different?
Every year the Oregon Construction Contractors Board receives and analyzes customer complaints against contractors.
These complaints along with other factors dictate the amount of the surety bond. Examples of factors that influence the bond amount are:
- Increases in the cost of materials
- The average costs of projects
- The average size of projects
And at a high level, the larger the project and more responsibility a contractor license (or endorsement) has, the higher the bond amount to protect the customer or project owner.
Bond amounts do not change on a yearly basis. Having worked with thousands of licensing agencies, the average tends to be 3 to 5 years.
County, Municipal, and Performance Bonding Requirements
We've helped serve over 4,118 Oregon contractors and rarely assist contractors in the purchase of a county or city level contractor bond.
However, the state level contractor license bonds are not the only type of surety bond contractors may have to purchase.
Depending on the project, contractors may be responsible for purchasing:
- Bid bonds
- Performance bonds
- Payment bonds
If you need one of these bonds, please complete a quote request detailing your project and a bond specialist will help you purchase the correct bond.
How Much Does an Oregon Contractor License Bond Cost?
A contractor license bond's price is calculated by a rate determined by a surety.
A surety is the insurance company that underwrites the surety bond. Every surety uses their own internal process when determining this rates, but every surety accounts for these factors:
- Personal credit of the business owner or owners
- The business' experience and industry experience
- Any prior bond claims if the business owner or owners were licensed in the past with a bond that received a valid claim
This rate multiplied by the bond amount is the price you pay to meet the bonding requirement.
This is why working with a bonding agency like Surety Bonds Direct is important.
We work with a network of the most credible A-rated sureties, allowing us to price shop for you and obtain the lowest possible price. Depending on the bond, these prices can vary by hundreds of dollars.
Oregon Contractor License Bonds With a Fixed Price and No Credit Check
For the following Oregon contractor bonds, Surety Bonds Direct has secured low fixed priced bonds requiring no credit check.
This means you can instantly purchase your bond and have it issued within one business day.
Commercial General Level 2
| Bond Type | Bond Amount | Bond Term | Get Pricing |
|---|---|---|---|
| Commercial General Level 2 | $25,000 | 1 year | |
| 2 year | |||
| 3 year |
Commercial Specialty Level 2
| Bond Type | Bond Amount | Bond Term | Get Pricing |
|---|---|---|---|
| Commercial Specialty Level 2 | $25,000 | 1 year | |
| 2 year | |||
| 3 year |
Commercial Developer
| Bond Type | Bond Amount | Bond Term | Get Pricing |
|---|---|---|---|
| Commercial Developer | $25,000 | 1 year | |
| 2 year | |||
| 3 year |
Residential General
Residential Limited
Residential Specialty
Residential Developer
Construction Flagging
Remember, you can instantly purchase your bond right now and have it issued within one business day. If your bond is a Residential bond, you can download your bond immediately after you purchase.
If you need help or have further questions, reach out to a bond specialist at 1-800-608-9950.
Oregon Contractor Retainage Bond
The current Oregon law states that 5% of a projects payment to the contractor qualifies for retainage.
To recap retainage quickly on large projects (typically over $250,000) milestone or progress payments have a percentage subtracted from them as a measure to ensure you complete the project.
However, as the contractor, you may need access to that capital immediately.
Now you can purchase a retainage surety bond to release funds from retainage.
What Is The Retainage Bond Amount?
The bond amount is determined by the contractor based on the capital they want released. The cap would be 5% of the project cost as this is the maximum for retainage.
For example, if you needed $150,000 released from retainage, you can purchase a $150,000 surety bond to access those funds.
The price is determined the same as any contractor bond that requires a custom rate from a surety.
Here are some example prices based on the $150,000 example from above.
Once the project is completed the bond expires and the remaining money in retainage is released.
Oregon Contractor License Bonds Requiring a Quote
The following contractor bonds require a custom rate based on the criteria mentioned above: personal credit, experience, and prior bond claims (if applicable).
| Bond Type | Bond Amount | Get Pricing |
|---|---|---|
| Commercial General Level 1 | $80,000 | |
| Commercial Specialty Level 1 | $55,000 |
Let's look at the $80,000 General Contractor Level 1 bond for examples of how different rates impact the price you pay.
The rates in the table range from really good to about average. Remember the price is the rate multiplied by the $80,000 bond amount.
| Bond Amount | Premium Rate | Total Cost |
|---|---|---|
| $80,000 | 0.05% | $400 |
| $80,000 | 0.07% | $560 |
| $80,000 | 1% | $800 |
| $80,000 | 1.2% | $960 |
| $80,000 | 2% | $1,600 |
It's important to get your specific pricing and the process is easy to start.
Click here and start the online quote process. It takes 90 seconds to submit your request and we'll start pricing shopping for you.
If you prefer to speak with a bond specialist, you can call 1-800-608-9950.
Having a bond specialist secure pricing for you costs nothing and there's zero obligation to purchase the bond once you receive the pricing.
Why is an Oregon Contractor Bond Required?
The Oregon Construction Contractors Board requires contractors and contracting businesses to get licensed to legally conduct contracting business in the state.
The licensing process ensure contractors has:
- Accumulated a minimum amount of on-the-job experience
- Obtained the necessary level of education
- Passed any required examinations
- Submitted proper business records
- Passed criminal background checks
- Purchased the minimum amount of insurance
- Selected the appropriate license type for the projects they want to bid on
And one of the requirements for all license classifications is the surety bond.
The surety bond is one of the primary methods the OCCB uses to hold contractors accountable to the promises they'll make to their customers.
What Does a Oregon Contractor License Bond Protect Against?
Even though the OCCB has outlined a set of standards for getting licensed, every year there will always be a few licensed contractors who try to purposefully cut corners to increase profits or even steal money from their customers.
Examples of these fraudulent actions can include:
- Breaking the terms of a construction project without the project owners knowledge
- Taking deposits or down payments and never starting or completing a project
- Replacing materials with cheaper alternatives to increase profits
- Failing to pay subcontractors for completed work
- Neglecting building codes and purposefully performing poor quality work to save money
If a contractor is found guilty of any of these actions, a claim can be made against the contractor license bond for financial repayment, but only up to the amount of the specific bond and only if the claim is deemed legitimate.
In the event of any claim, It's always a priority to work with your customers to prevent any disagreement from escalating to a claim.
What Happens After You Purchase Your Bond?
Residential and Home Inspector ones are instant issue
All Residential and Restricted Residential bonds are instant issued. This means after you complete the online order form, you can instantly download your bond.
We guarantee your bond will be accepted by the OCCB. We'll fix any potential issue or refund your money.
For any Commercial bond, after you purchase your bond, Surety Bonds Direct's issuing department will prepare your bond with the correct signatures, notarized seals, and the required power of attorney.
The OCCB allows us to email a copy of the bond to you. This makes it easy and fast for you to receive your bond and submit it with your application.
Renewing Your Contractor Bond
- Residential
- Residential Restricted
- Commercial General Level 2
- Commercial Specialty Level 2
These bonds allow you to choose between a 1, 2, or 3 year bond term from the effective date.
Commercial General Level 1 and Commercial Specialty Level 1 bonds expire one year from the effective date.
The effective date is a date you choose when you purchase your bond. It's the date your bond becomes active.
As your renewal date approaches, your bond specialist will reach out to you 30 to 45 days in advance to make paying the renewal premium easy.
Once you pay the renewal premium, your bond remains active.
This Contractor License Bond is Continuous
A continuous bond means the original bond remains active as long as you pay the renewal premium.
Most of the time, you never have to worry about having a new bond issued or re-submitting the bond to the OCCB.
If we find you lower pricing, we'll get you that bond and in this case you will have to submit the new bond to the OCCB.
Contractor Bonds And Getting Your Oregon Business License/Registration
If you're applying for your first Oregon contractor license, the Oregon Construction Contractors Board website is a great place to start.
We also have an Oregon contractor license blog post you can read to help break the process up into understandable steps.
At a high level the steps are:
- Determine the types of structures you will work on. This indicates what type of license endorsement you will need.
- Complete pre-license training and take the test. Select a Responsible Managing Individual to complete the prerequisite training and test.
- File your corporation, LLC, and/or assumed business name with the Oregon Secretary of State, Corporation Division or call 503-986-2200.
- Submit a CCB surety bond in the required amount(s).
- Obtain and provide proof of general liability insurance in the required amount.
- Purchase workers’ compensation insurance as required if you will be hiring employees.
- Obtain other employer account numbers such as state and federal tax numbers (as required).
- Complete the application that corresponds with your endorsement (Residential only, Commercial only, Both residential and commercial (dual)).
- Submit your application with your original bond, insurance certificate, and two-year license fee.
- Additional items may be needed and exact requirements may vary based on applicant, license type or obligee discretion. Please see obligee and state links in the Other Helpful Information and Links section below or contact the obligee directly for more information.
Can't find what you're looking for? Let us help!
Get Started » or, if you'd prefer, call us at
(No obligation, takes 2 minutes)