What is an Oregon Residential Contractor Bond?
In the US, residential construction is a vital segment of the construction industry, generating roughly half of the country’s value of private construction. However, this sector is also a high-risk industry in the U.S. because of its exposure to several safety-related threats and fall injuries.
In 2016, experts and practitioners all over the U.S. expanded efforts to hunt for contractor misbehaviors and mete out ruthless reprimands and punishments, including criminal indictments, for abuse and transgressions of worker-safety issues to bribery. To play down the risks, Oregon law mandates residential contractors to secure at all times, the Oregon Residential Contractor Bond.
The Oregon Residential Contractor Bond is a manifestation of a residential contractor’s willingness to abide by all the rules and policies mandated by state laws. It is also an indisputable assurance that all tax obligations due to the government will be met and complied with.
This is a bond safeguards the State of Oregon and the public from residential contractors who might knowingly or inadvertently engage in fraudulent activities or attempt to elude paying their taxes, fines, and penalties.
Why do you need an Oregon Residential Contractor Bond?
You need the Oregon Residential Contractor Bond because your business is of the essence to you and your profession is important. The bond renders you a business owner of integrity, trustworthiness, and professionalism.
What is the cost of an Oregon Residential Contractor Bond?
The Oregon Residential Contractor Bond is for $20,000. For specialty contractors, the bond is $15,000. The Residential Limited Contractors Bond in Oregon can oversee an indefinite number of construction ventures if the applicant expects gross earnings of less than $40,000 and that no contract must be written for over $5,000.
Also, the value of any of the works does not go beyond $5,000 for a job site in one year, and that the Construction Contractors Board can verify its tax records for compliance with all relevant laws. When the criteria are met, the required bond amount is $10,000. This classification is also necessary for part-time contractors.
The State of Oregon mandates that all certified contractors must own liability insurance and, in some instances, workers' compensation insurance.
The Workers Compensation may be demanded depending on the formation and type of your business undertaking.
How do I get an Oregon Residential Contractor Bond?
Getting an Oregon Residential Contractor Bond is easy. Pick a reliable surety company and give them a call ASAP! An experienced surety professional will willingly provide you with answers to whatever concerns you have in the operation of your business.