Contractor license bond cost
Oregon contractor bonds are required by the Oregon Construction Contractors Board. Depending on the specific classification of the contractor’s work and license type, different bond amounts are required. These bonds ensure that contractors stay true to their contractual agreements and lawfully abide by all laws stated in the Oregon Revised Statutes.
To ensure that you can legally work upon obtaining your bond, it is crucial that the correct bond be posted.
These bonds are subject to underwriting, which means the amount an applicant will pay is directly related to his or her credit report. Clients with excellent credit could pay as low as 1% of their total bond amount!
Commercial Contractor Information
Oregon commercial general contractor bonds are split into 2 categories, Level 1 and Level 2. Level 1 contractors must have 8 years of construction experience and post a $75,000 bond, while Level 2 contractors must have 4 years of experience and post a $20,000 bond. General contractors can supervise or perform any number of commercial construction projects.
Commercial specialty contractor bonds in Oregon are also split up into Level 1 and Level 2 categories. 8 years of experience and a $50,000 bond is required for Level 1 contractors, and 4 years of experience and a $20,000 bond is required for Level 2 contractors. Specialty contractors can only work on 1 or 2 commercial projects at any given time.
Oregon commercial contractors must meet the following criteria:
- own all properties they plan to work on
- work on or improve properties they plan to sell
- work side-by-side with another licensed contractor to oversee all levels of the construction activity
Residential Contractor Information
Residential general contractor bonds in Oregon allow contractors to supervise and perform residential construction work. General residential contractors must post a $20,000 bond.
Oregon residential specialty contractors must post a $15,000 bond. Specialty contractors in a residential setting can only work on 1 or 2 unrelated projects. However, if they work on a single property, they may work on 3 or more buildings as long as labor and material costs amount to less than $2,500.
Residential limited contractors in Oregon can supervise an unlimited number of building projects only if the following criteria is met:
- applicant expects gross sales to be less than $40,000
- no contract is written for more than $5,000
- the value of any work doesn’t exceed $5,000 for a job site in one year
- the Construction Contractors Board can access tax records to verify compliance to all applicable laws
If all of these requirements are met, the necessary bond amount is $10,000. This classification is also necessary for part-time contractors.
Oregon residential developer bonds must be posted in the amount of $20,000. In order to obtain this bond and license classification, the following criteria must be met:
- applicant owns properties
- applicant intends to sell properties
- applicant works with 1 or more general contractors who oversee job site building
- applicant performs no work on the site
Residential restoration contractors must file a $10,000 bond by January 1, 2016. Section 2, Chapter 701 of the Oregon Revised Statutes defines the following services for residential restoration contractors:
- non-routine cleaning, water removal or personal property inventory
- board-up services (covering up openings of a damaged structure to prevent unauthorized entry and to secure against weather)
- debris removal (excluding removal involving demolition work)
Contractor license bond details
Oregon contractor bonds are continuous until canceled. If the surety decides to cancel this bond, the surety must provide the Oregon Construction Contractors Board with written notice 30 days prior to termination.
Once the bond form is filled out, the bond must be sent to the contractor, not the Oregon Construction Contractors Board. The bond must be submitted with the license application. If the bond is not filed with the application to the Board within 60 days of the sign and seal date, the bond will no longer be considered valid.
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