Oregon
Contractor Bonds

How much does an Oregon construction contractor license bond cost?

Oregon requires contractors to obtain a contractor bond to become licensed. The amount for these bonds varies based on the type of license each applicant must obtain. Some of these bonds can be issued instantly online for a set premium — for example, the $5,000 residential restoration contractor bond can be issued for a $100 premium. Other Oregon construction contractor bonds require underwriting consideration as they are deemed riskier, which could mean they have a higher bond amount or an industry history of claims. Underwriters must review the applicant’s personal, business, and credit information before determining whether — and at what price — a bond can be issued.

How to become a licensed Oregon contractor

For any contractor working for compensation on any type of construction activity involving property improvements in the state, you are most likely required to obtain a license. However, some types of work do not require licensing, including gutter cleaning, power/pressure washing, and debris clean-up.

Follow these steps below to begin the licensing process:

1. Determine the license endorsement required.

Based on the type of work you will perform, you must select the correct endorsement in order to be properly licensed for your business. Visit the Construction Contractors Board License Endorsement Chart to determine whether you will work on residential structures such as single-family homes, commercial structures such as manufacturing facilities, or both. Other types of work will require a specialty license in addition to a contractor construction license, including:

• Home inspectors

• Lead-based paint licenses

• Locksmiths

• Home energy assessors

• Construction flagging contractors

• Public works bonds

• The Energy Efficiency and Sustainable Technology Program

2. Complete the pre-license training and pass the examination.

The training and exam must be completed by a Responsible Managing Individual (RMI) who is an owner/employee of the business. He or she must manage or supervise the construction performance and be at least 18 years old.

• 16 hours of training must be completed through an approved education provider

  • If you passed the NASCLA Accredited Examination for Commercial General Building Contractors, you do not need to complete pre-licensing training.

• Pass the Oregon licensing exam.

You must apply for your contractor license within two years of passing the test.

3. File your corporation, LLC, and/or assumed business name.

This must be filed with the Oregon Secretary of State’s Corporation Division.

4. Post an Oregon construction contractor bond.

• Submit an original residential or commercial contractor bond.

  • Residential contractor bond amounts range from $10,000 to $20,000.

  • Commercial contractor bond amounts range from $20,000 to $75,000.

    • This bond ensures you lawfully abide by contractual agreements and the Oregon Revised Statutes.

5. Submit proof of general liability insurance.

Information on how you can find and submit insurance can be found on the Oregon Liability Insurance Page. The required amount for all contractors can be found on the list below:

• Residential contractors

  • Residential General Contractor - $500,000 per occurrence

  • Residential Specialty Contractor - $300,000 per occurrence

  • Residential Limited Contractor - $100,000 per occurrence 

  • Residential Developer - $500,000 per occurrence 

  • Home Services Contractor - $100,000 per occurrence

  • Residential Locksmith Services Contractor - $100,000 per occurrence

  • Home Inspector Services Contractor - $100,000 per occurrence 

  • Home Performance Score Contractor - $100,000 per occurrence

• Commercial contractors

  • Commercial General Contractor, Level 1 - $2,000,000 aggregate 

  • Commercial General Contractor, Level 2 - $1,000,000 aggregate 

  • Commercial Specialty Contractor, Level 1 - $1,000,000 aggregate 

  • Commercial Specialty Contractor, Level 2 - $500,000 per occurrence

  • Commercial Developer - $500,000 per occurrence

6. Obtain workers' compensation insurance.

This is only a requirement if you plan on hiring employees. Discover the ins and outs of the required workers' compensation insurance on the State of Oregon: Licensing - Workers' Compensation Insurance Page.

7. Obtain state and federal employer tax numbers.

8. Complete the required application.

There are three potential applications for you to complete, depending on which license endorsement type you require.

• Residential

• Commercial

• Dual: Residential and Commercial

After completing the steps, submit your application, including your original bond, certificates of insurance, and the $250 fee for a two-year license, to the State of Oregon Contractors Board, P.O. Box 14140, 201 High St. SE, Suite 600, Salem, OR 97309-5052.

Oregon commercial general contractor bonds

Oregon commercial general contractor bonds are split into two categories: Level 1 and Level 2.

• A $75,000 Oregon contractor bond is required of Level 1 contractors, who must have eight years of construction experience.

• A $20,000 contractor bond must be obtained by Level 2 contractors, who have four years of experience.

Find information about each bond on our Oregon Commercial Level 1 General Contractor Bond andOregon Commercial Level 2 General Contractor Bond pages.

Additional bond requirements for Oregon residential construction contractors

• A $20,000 Oregon Residential General Contractor Bond

• A $20,000 - $100,000 Oregon Residential Contractor Disciplinary Bond

• A $20,000 Oregon Residential Developer Bond

• A $10,000 Oregon Residential Home Performance Score Contractor Bond

• A $10,000 Oregon Residential Inspector Services Contractor Bond

Additional bond requirements for Oregon specialty construction contractors

• A $50,000 Oregon Commercial Level 1 Specialty Contractor Bond

• A $20,000 Oregon Commercial Level 2 Specialty Contractor Bond