Oregon Contractor License Bonds

Learn more about Oregon Contractor License Bonds

How much does a construction contractor bond cost in Oregon?

Oregon has a variety of contractor bonds, from residential and commercial license bonds to specialty contractor bonds. The cost of a majority of the Oregon contractor bonds will be based on your credit.This includes all residential and commercial license bonds. Your credit will determine your premium rate. The cost of your bond (the premium) will be the percentage (premium rate) of the bond amount you need. Premium rates vary from as low as 1% for standard credit and starting around 6% for nonstandard credit. 

For instance, with a 1% premium rate, the Oregon residential general contractor bond will cost as little as $200. While, with the same premium rate, the commercial general contractor level 2 bond would start around $750. We work with all types of credit, so apply anyway for your free quote.

Why are contractor bonds important in Oregon?

Contractor bonds ensure that contractors adhere to licensing laws. If a licensed contractor fails to comply with their city or state’s regulations, the surety bond protects the city/state from incurring financial damages as a result. 

The state of Oregon requires surety bonds as a part of the licensing process for contractors. The Oregon Construction Contractors Board (CCB) requires both residential and commercial contractors to submit a surety bond with their license application. 

The type of surety bond will depend on the contractor’s endorsement. There are two endorsements in Oregon: residential and commercial. If a contractor has both a residential and commercial endorsement, they will need a surety bond for each type. 

Both endorsements have other classifications that will determine the bond amount you need. The commercial endorsement has the following classifications with the necessary bond amounts:

  • Commercial General Contractor Level 1: $75,000 
  • Commercial General Contractor Level 2: $20,000
  • Commercial Specialty Contractor Level 1: $50,000 
  • Commercial Specialty Contractor Level 2: $20,000 
  • Commercial Developer: $20,000

The residential endorsement classifications and respective bond amounts are as follows:

  • Residential general contractor (RGC): $20,000
  • Residential specialty contractor (RSC): $15,000
  • Residential limited contractor (RLC):  $10,000
  • Residential developer (RD):  $20,000 

There are also restricted residential endorsements for specific services, such as a residential locksmith services contractor. Check with the Oregon CCB to determine which bond you need.

How do I get my general contractor's license in Oregon?

Whether you need a residential or commercial contractor license, the process is the same. Once you’ve determined the type of structures you’ll be working on—you’ll know which license endorsement you need. From there, you must complete the following steps:

  1. Complete pre-license training and take the test. 
  2. Register your business with the Oregon Secretary of State, Corporation Division.
  3. Obtain your surety bond. There are two different bond forms, either residential or commercial. If you have both endorsements, you need both bonds. Again, different classifications require different bond amounts.
  4. Obtain liability insurance. You will need to provide proof of insurance with your license application. 
  5. Obtain workers’ compensation insurance if you have employees.
  6. Complete an application for the residential, commercial, or dual license.
  7. Submit your application. Upon submission, you will need to include the:
  • Original surety bond
    • Insurance certificate
    • $250 application fee

This is only a brief overview of what you can expect when working towards your license. The Oregon Construction Contractors Board offers additional information regarding this process. 


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