Oregon Contractor License Bond

An Oregon contractor license bond is a surety bond that every contractor licensed by the Oregon Construction Contractors Board (CCB) must file before the license is issued or renewed. ORS 701.068 requires it, and the amount depends on your license endorsement: from $15,000 for limited and home-service endorsements up to $80,000 for a Commercial General Contractor Level 1. The bond pays amounts CCB determines a contractor owes homeowners, workers, subcontractors and suppliers when the contractor breaks Oregon's contractor laws or contracts. It doesn't protect the contractor. If the surety pays a claim, the contractor must pay the surety back under the indemnity agreement.

Key Takeaways

• Bond amount: $15,000 to $80,000, set by your endorsement. Residential General is $25,000, Residential Specialty is $20,000 and Commercial General Level 1 is $80,000. HB 2922 raised every amount by $5,000 on January 1, 2024. 
• Cost: with a credit score of 700 or higher, a $25,000 Residential General Contractor bond typically costs $250 to $750 a year.
• Residential and commercial endorsements: if you hold both, you file a separate bond for each, at the full amount for each endorsement. 
• Continuous bond: the bond stays in effect until it's canceled or used up by claims. A surety must give CCB 30 days' written notice before canceling, and CCB can suspend a license that has no bond on file. 

For a deeper look at what drives premiums, see our surety bond cost guide or check the cost of a $25,000 bond. To bring your rate down, read our surety bond rates guide.

1. Match the Bond to Your Endorsement

Your bond amount comes from the endorsement on your CCB license, so choose the endorsement before you buy the bond. If you hold both residential and commercial endorsements, you need two bonds. You'll also need a separate $30,000 public works bond if you work on prevailing wage projects, unless an exemption applies.

2. Complete Our Online Application

Our online application takes about five minutes. Have this information ready:

• your full legal business name, exactly as registered with the Oregon Secretary of State,
• your CCB license number, if you're already licensed,
• the endorsement(s) you hold or are applying for.

3. Get Your Quote

Most applicants receive a quote within minutes. Files that need a closer look, such as low credit scores or past claims, may take 24 to 48 hours. We shop multiple surety markets so you get the best rate we can find.

4. Pay and Submit the Bond to CCB

After payment, we issue your bond on CCB's official bond form. CCB doesn't accept any other form. The bond needs the original signature of the surety's attorney-in-fact, with the power of attorney still attached. New applicants should send the bond with their license application, because sending it separately can delay the license. CCB must receive the bond within 60 days of the date it was signed. CCB lists all bond and filing rules on its CCB license page.

First time buying a bond? Our guide on how to get bonded walks through the process in more detail. Have questions along the way? Contact us or call (877) 514-5146.

Residential vs. Commercial Endorsements

Work on residential structures requires a residential endorsement, and work on large commercial structures requires a commercial endorsement. Either type qualifies for small commercial structures. Licensees with both endorsements must keep a bond in the full amount for each, and one bond can't cover both. CCB's endorsement chart explains which endorsement fits your work.

Claims and Payment Priority

Claims run through CCB, not the surety. On residential bonds, owner complaints have payment priority and payments to non-owner complainants are capped at $5,000 (ORS 701.153). Court action against the surety can't start until 30 days after CCB notifies it that payment is due. See how surety bond claims work.

Liability Insurance

Every CCB licensee must also carry general liability insurance in the amounts above under ORS 701.073, with proof to CCB at application and each renewal.

Increased Bonds

Under ORS 701.068, CCB can require a bond of up to five times the normal amount when it reinstates a license that was suspended because the contractor owed more than its bond, and for applicants or licensees who meet conditions the board sets by rule. One condition is unpaid debts under a final CCB order owed by the business or its owners or officers (OAR 812-003-0175).

Public Works Bond

Contractors and subcontractors who must pay prevailing wages on a public works project must file a $30,000 public works bond with CCB before starting work. It's continuous, so you don't need one per project, and it's in addition to your license bond. The bond guarantees payment of unpaid wages under ORS 279C.836. There are two main exceptions:

• You can choose not to file the bond when the project's total contract price is $100,000 or less, even if your own share is smaller
• Certified disadvantaged, minority-owned, woman-owned, service-disabled veteran-owned and emerging small businesses can choose not to file it for their first four years of certification

The Bureau of Labor and Industries explains these rules on its prevailing wage page. Learn more about public works bonds.

Other Bonds Oregon Contractors May Need

The license bond only satisfies CCB. Project owners often require separate contract bonds, such as bid bonds, performance bonds and payment bonds. These guarantee a specific project rather than your license. For other bonds required in the state, see our Oregon surety bonds page.

Under ORS 701.021, you need a CCB license to bid on, offer or perform construction work for someone else in Oregon. That includes subcontractors (see our guide on how to become a subcontractor).

The main exception is the "handyman exemption" in ORS 701.010. It covers casual, minor work on one structure or project when the total of all your contracts for that job, including labor and materials, is under $1,000. CCB's rule, OAR 812-002-0120, says the work must:

• Not need a permit
• Not affect the health or safety of the owner or occupants
• Not be done as a subcontractor to a licensee

Lead-based paint work on pre-1978 homes or child-occupied facilities never qualifies. The exemption is also lost if you advertise yourself as a contractor, for example on signs or business cards.

Unlicensed contracting can bring civil penalties of up to $5,000 per offense under ORS 701.992. Under ORS 701.131, an unlicensed contractor also generally can't file a construction lien, file a CCB complaint or sue to collect payment for the work.

Your CCB license renews every two years, but the bond itself has no expiration date. Under OAR 812-003-0180, it stays in effect until the surety cancels it, claims use it up or you no longer meet licensing requirements. You keep paying the premium each year, or each term if you prepay (renewal process).

If your surety wants to cancel, it must send 30 days' written notice to you and to CCB, though cancellation doesn't end its responsibility for CCB orders tied to work you already did. File a replacement bond before the cancellation date. CCB can suspend a license with no bond on file without a hearing first, and you shouldn't bid or work while suspended. If claims use up your bond, CCB can require a new one.

You can check your bond and license status anytime with the CCB license search.

How much is an Oregon contractor license bond?

It depends on your endorsement. Residential General and Developer bonds are $25,000, Residential Specialty is $20,000 and Residential Limited and home-service endorsements are $15,000. Commercial Level 1 bonds are $80,000 for general and $55,000 for specialty contractors, and Commercial Level 2 and developer bonds are $25,000. You pay a yearly premium of about 1% to 3% of that amount if your credit score is 700 or higher.

Do Oregon contractors have to be bonded?

Yes. ORS 701.068 requires every CCB applicant and licensee to file a surety bond before a license is issued or renewed. If you hold both residential and commercial endorsements, you need a separate bond for each.

How long does an Oregon contractor bond last?

Oregon contractor bonds are continuous. They have no end date and stay in effect until the surety cancels with 30 days' written notice to you and CCB, until paid claims use them up or until you no longer meet licensing requirements. Your license renews every two years, but the same bond carries over as long as you pay the premium.

How do I file a claim against an Oregon contractor's bond?

Claims start with CCB's complaint process, not with the surety. Homeowners, subcontractors, suppliers and unpaid employees can file, and so can licensed contractors with a complaint against their licensed subcontractors. Before filing, you generally must send the contractor written notice by certified mail at least 30 days ahead. CCB can waive this if the contractor already knows about the dispute. Homeowners generally must file within one year after the contractor substantially completed work on an existing structure. For a new structure, the deadline is one year after it is first occupied or two years after substantial completion, whichever comes first. Employees, subcontractors and suppliers generally have one year from when the debt was incurred. For large commercial projects, you must first bring a court action or start arbitration, then send CCB a copy of the filing with a complaint form.

Do I need a contractor license for small jobs in Oregon?

Possibly not. Casual, minor work worth under $1,000 in total on one project is exempt only if it needs no permit, doesn't affect health or safety, isn't done as a subcontractor and isn't advertised as contracting work. If any of those conditions isn't met, you need a CCB license, and therefore a bond.

Do subcontractors need a contractor license bond in Oregon?

Yes. Subcontractors must hold their own CCB license and file their own bond for their endorsement. A subcontractor can't work under the prime contractor's license or bond, and the under-$1,000 handyman exemption doesn't cover subcontract work.

Can I get an Oregon contractor bond with bad credit?

Yes. Lower credit means a higher rate, but our bad credit program helps contractors with challenged credit get bonded and licensed.

More questions? Visit our surety bond FAQ, see our bad credit surety bonds program, or contact our team.