Oregon Contractor Bonds

Oregon State Contractor License Bonds‍

In Oregon, contractors must post a surety bond with the Construction Contractors Board (CCB) as a prerequisite for licensing—whether residential, commercial, or dual (both). These bonds serve as a financial guarantee that protects consumers. Should a contractor fail to pay for labor, materials, or deliver work as agreed, the bond ensures compensation up to its full amount without requiring litigation.

The required bond amounts vary by license classification and were recently updated as of January 1, 2024. Here’s a breakdown:

• Residential General Contractor: $25,000
• Residential Specialty Contractor: $20,000
• Residential Limited Contractor: $15,000
• Commercial General Contractor (Level 1): $80,000
• Commercial General Contractor (Level 2): $25,000
• Commercial Specialty Contractor (Level 1): $55,000
• Commercial Specialty Contractor (Level 2) & Commercial Developer: $25,000

Contractors holding both residential and commercial endorsements must file separate bonds for each.

Public Works & Additional Bonding Requirements

In addition to the base license bond, those involved in public works projects exceeding $100,000 must submit a $30,000 Public Works Bond. This additional bond specifically covers compliance with prevailing wage laws enforced by Oregon’s Bureau of Labor and Industries.

This public works bond is not a substitute for the standard CCB license bond—it’s required on top of it.

Performance bonds are used to guarantee the performance of a contract. Project owners use these bonds to ensure projects are completed on time and on budget. They are required on all federally funded projects as well as most other publicly funded contracts valued at $150,000 or more.Payment bonds are used to guarantee the suppliers of material and labor are paid. Just like performance bonds, these bonds are required on all federally funded projects as well as most other publicly funded contracts valued at $150,000 or more. Payment surety bonds are more often than not issued alongside performance bonds.Bid bonds are used as a guarantee that a contractor is able and willing to enter into a contract. A bid bond also guarantees the contractor can and will secure a performance bond and/or a payment bond for the awarded contract. These bonds ensure only serious contractors submit legitimate bid proposals.

License and Permit Bonds are required by a municipality or other public body as a condition to granting a license or permit to engage in a specified activity, this bond guarantees that the party seeking the license or permit (the obligor) will follow applicable laws or regulations.

While there are too many License & Permit bonds to list, here are a few of the popular ones:

• OR (Portland) Street Opening
• OR (Salem) License & Permit
• OR (Pendleton) Street Excavation

Don't see your bond listed? Go ahead and fill out a bond form and in the notes field, let us know what type of bond you are in need of.

*Forms can be found under Quotes in the Navigation Bar*