Quick Facts:

  • Regulating Agency: Oregon Construction Contractors Board (CCB)
  • Required Bond Amount: $15,000 to $80,000 (varies by license type)
  • Cost Range: $75 to $800 annually (depending on credit)
  • Required For: All licensed contractors in Oregon

What Is an Oregon Contractor License Bond?

A contractor license bond is a type of surety bond required by the Oregon Construction Contractors Board (CCB) as a condition of licensure. This bond serves as financial protection for consumers, guaranteeing that contractors will comply with state laws and fulfill contractual obligations. If a contractor violates licensing laws, performs defective work, or fails to pay for labor/materials, the bond provides a financial remedy for affected parties.

Who Regulates Oregon Construction Contractor Licensing?

The Oregon Construction Contractors Board (CCB) is the regulatory agency responsible for licensing and regulating construction contractors in the state. The CCB enforces construction laws, maintains licensing standards, processes complaints, and mediates disputes between contractors and consumers.

Official website: Oregon Construction Contractors Board

What Bond Amount Is Required in Oregon?

Bond requirements in Oregon vary based on the type of license (endorsement) you hold:

Residential Endorsements:

  • Residential General Contractor (RGC): $25,000
  • Residential Specialty Contractor (RSC): $20,000
  • Residential Limited Contractor (RLC): $15,000
  • Residential Developer (RD): $25,000
  • Specialty Residential Endorsements (Home Services, Locksmith, Home Inspector, etc.): $15,000

Commercial Endorsements:

  • Commercial General Contractor Level 1 (CGC1): $80,000
  • Commercial General Contractor Level 2 (CGC2): $25,000
  • Commercial Specialty Contractor Level 1 (CSC1): $55,000
  • Commercial Specialty Contractor Level 2 (CSC2): $25,000
  • Commercial Developer (CD): $25,000

Dual Licensing: If you perform both residential and commercial work, you must obtain both types of bonds in their respective amounts.

How Much Does a Contractor Bond Cost in Oregon?

The annual premium for an Oregon contractor license bond typically ranges from 0.5% to 3% of the total bond amount for most applicants. Your specific rate will depend on several factors:

Pricing factors:

  • Personal credit score (primary factor)
  • Business experience and track record
  • Financial stability
  • Claims history

Approximate annual costs by credit tier:

  • Excellent Credit (700+ FICO): 0.5%-1% of bond amount ($100-$250 for most bonds)
  • Good to Average Credit (650-699): 1.5%-3% of bond amount ($200-$600 for most bonds)
  • Poor Credit (below 650): 3%-10% of bond amount ($450-$2,000 for most bonds)

Most contractors with decent credit can expect to pay roughly $75-$125 per year for each $15,000-$25,000 of bond coverage.

Who Needs a Contractor License Bond in Oregon?

ALL individuals and businesses seeking an Oregon contractor license must have the appropriate bond on file before the CCB will issue or renew a license. This requirement applies to:

  • General contractors (residential and commercial)
  • Specialty contractors (limited to specific trades)
  • Limited contractors (small-scale operations)
  • Developers (residential and commercial)
  • Specialty service providers (home inspectors, locksmiths, etc.)

The bond must be maintained continuously as long as the license is active.

What Other Contractor Bonds Are Required in Oregon?

In addition to the standard license bond, contractors working on qualifying public works projects over $100,000 must file a separate $30,000 Public Works Bond with the CCB. This additional bond is specifically for prevailing wage projects and does not replace the standard license endorsement bonds.

Other required financial protection includes:

  • General liability insurance ($100,000-$2,000,000 depending on license type)
  • Workers’ compensation insurance (if applicable)

How Does ContractorNerd’s Application Process Work?

Getting your Oregon contractor license bond through ContractorNerd is simple:

  1. Apply online – Complete our short application with basic business information
  2. Get an instant quote – Receive competitive pricing based on your credentials
  3. Purchase your bond – Pay securely online with various payment options
  4. Receive your bond – Get your bond documents immediately via email
  5. Submit to CCB – We can file electronically or you can submit with your license application

The entire process typically takes just minutes from application to bond issuance.

How Quickly Can I Purchase a Bond?

With ContractorNerd, you can purchase your Oregon contractor license bond instantly. Our streamlined online process provides:

  • Same-day approval for most applicants
  • Instant electronic delivery of bond documents
  • Immediate electronic filing with the CCB (when applicable)

Even applicants with credit challenges can typically get approved within 24 hours.

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

You have two options for filing your contractor license bond:

  1. Electronic filing – Many surety providers (including ContractorNerd) can file your bond electronically directly with the CCB, saving you time and ensuring proper submission.
  2. Manual submission – You can submit the original bond document along with the power of attorney to the CCB as part of your license application or renewal. The bond and power of attorney should be included together with your application materials.

Whichever method you choose, always verify with the CCB that your bond is properly recorded in their system.

How Are Claims Handled on an Oregon Contractor Bond?

If a customer believes a contractor has violated state laws or contractual obligations, they can file a complaint with the CCB. Here’s how the claim process works:

  1. The CCB investigates the complaint and determines if the contractor violated regulations
  2. If violations are found, the CCB may issue an order for the contractor to remedy the situation
  3. If the contractor fails to comply with the order, the affected party can make a claim against the bond
  4. The surety company pays out valid claims up to the bond amount
  5. The contractor must reimburse the surety company for any paid claims

Important: The bond is not insurance for the contractor. If a claim is paid, the contractor remains fully liable to repay the surety for the claim amount plus costs.

Frequently Asked Questions (FAQ)

Can I get a bond with bad credit?

Yes, contractors with credit challenges can still obtain the required bonds. While premiums may be higher (potentially 3%-10% of the bond amount), specialized surety providers work with all credit situations. As you establish a track record of compliance and improve your credit, your rates can be reduced at renewal.

What happens if I don’t have a bond?

Operating without the required bond is illegal in Oregon. Consequences include:

  • License suspension or revocation
  • Fines and penalties
  • Ineligibility for permits
  • Potential legal action for operating without a license
  • Inability to legally enforce contracts

How do bond renewals work?

Most Oregon contractor bonds are continuous until canceled, but require annual premium payments. Your surety provider will send renewal notices before your premium expires. To maintain uninterrupted coverage:

  • Pay your renewal premium on time
  • Update your business information if anything changes
  • Consider shopping rates if your credit or business situation has improved

What’s the difference between a bond and insurance?

Though both provide financial protection, they serve different purposes:

  • Bonds protect consumers and the state from contractor violations. If a claim is paid, the contractor must reimburse the surety company.
  • Insurance protects the contractor from specific risks like property damage or injuries. The insurance company does not seek reimbursement for paid claims.

Both are required for Oregon contractor licensing.

Ready to Get Your Oregon Contractor License Bond?

Apply Now for an instant quote and same-day approval. Our online system makes getting bonded quick, easy and affordable.